A recent public disagreement between Justin Sun, the founder of Tron, and the Trump-linked cryptocurrency project WLFI has escalated. Sun has strongly criticized a new governance proposal by WLFI, labeling it as 'one of the most absurd governance scams' he has encountered. In a 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 indefinitely.
He also claimed that he and other significant token holders have been excluded from the process, stating that tokens representing around 4% of the voting power under his control have been frozen. Sun questioned the legitimacy of the vote, suggesting that control over 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, affecting over 62 billion tokens with 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. Token holders who do not accept the new terms would remain locked indefinitely. Sun's criticism has been echoed by others, including Simon Dedic, founder of Moonrock Capital, who described the move as 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the ecosystem for the long term and ensure healthy market supply.
The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months and includes previous accusations of user exploitation and threats of legal action.