A heated public dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, escalated on Wednesday after Sun vehemently criticized a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, alleging it is designed to penalize token holders who vote against it by locking their tokens indefinitely. He also claimed that he and other significant holders had been barred from participating in the process, stating that tokens representing approximately 4% of the voting power under his control had been frozen. Furthermore, 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 seeks to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. The backlash against the proposal has been intense, with Simon Dedic, founder of Moonrock Capital, joining Sun in his criticism, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply.
This latest development marks an escalation in the feud between Sun and WLFI, which has been building for months and includes previous threats of legal action and accusations of exploiting users.