A heated dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has intensified, with Sun condemning a recent governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with those who dissent facing indefinite token lockups.
He also claimed that he and other major holders have been excluded from the process, with approximately 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 described the move as a 'rug pull' that would allow the project to extract further value from investors. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term and ensure a healthy market supply.
The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months and has included threats of legal action and public accusations of exploitation.