A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has intensified after Sun vehemently criticized a new governance proposal, labeling it 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the project's plan is designed to penalize dissenting voices, with token holders who oppose the proposal facing the risk of having their tokens locked indefinitely. Furthermore, Sun claimed that he and other significant holders were excluded from the voting 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 lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. He argued that the proposal is not a genuine governance effort but rather an attempt by a select few to consolidate power and expropriate property. The controversy surrounds WLFI's proposal to overhaul token lockups across the ecosystem, which would affect over 62 billion WLFI tokens, introducing multi-year lockups and vesting schedules.
Tokens held by insiders would be subject to a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely. Sun is not alone in his criticism, as Simon Dedic, founder of Moonrock Capital, expressed that early investors had been 'rugged' by the Trump family themselves. 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 a healthy market supply.
The backlash is the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.