A public feud between Justin Sun, the founder of Tron, and the Trump-linked cryptocurrency project WLFI escalated on Wednesday. Sun strongly criticized a new governance proposal put forth by WLFI, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize those who vote against it, with token holders facing the risk of having their tokens locked up indefinitely.
He also claimed that he and other significant holders had been excluded from the process, stating that tokens representing around 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting 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 WLFI tokens subject to new terms, including multi-year lockups and vesting schedules.
Tokens held by insiders 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 not isolated, as Simon Dedic, founder of Moonrock Capital, also pushed back against the proposal, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, saying it was designed to 'further align all the 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 the project, which has been escalating over the past months.