A public feud between Justin Sun, founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has ever seen. In a lengthy post, Sun accused WLFI of designing a vote that penalizes token holders who vote against the proposal, with those who dissent facing indefinite token lockups.
He also alleged that he and other large token holders had been excluded from the voting process, with roughly 4% of the voting power under his control frozen. Sun questioned the legitimacy of the vote, claiming that control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Insiders, such as team members and advisors, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial, the company behind WLFI, defended the proposal, saying it was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply.' The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months.
The dispute began in September when WLFI blacklisted a blockchain address linked to Sun, and has since escalated with both parties exchanging public accusations and threats of legal action.