A public feud between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post on social media, Sun alleged that the proposal is designed to punish token holders who vote against it, with the possibility of having their tokens locked indefinitely. He also claimed that he and other major token holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen.
Sun questioned the legitimacy of the vote, suggesting that control of the protocol lies 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. Token holders who do not accept the new terms would remain locked indefinitely.
Sun's criticism has been echoed by other figures in the cryptocurrency space, including Simon Dedic, founder of Moonrock Capital, who accused the project of 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating that it is intended to 'further align all participants in the WLFI ecosystem for the long-run' and 'ensure healthy market supply.' The dispute between Sun and WLFI has been ongoing for months, with tensions escalating after WLFI blacklisted a blockchain address linked to Sun and Sun accused the project of exploiting users through DeFi transactions.