A heated public disagreement between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated following Sun's sharp criticism of a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, claiming it is designed to punish token holders who vote against it by locking their tokens indefinitely. He also alleged that he and other significant holders have been excluded from the voting process, with tokens equivalent to 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, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules.
Insiders, such as team members and partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Simon Dedic, founder of Moonrock Capital, also criticized the proposal, 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 participants in the ecosystem for the long term and ensure healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, following threats of legal action and accusations of exploiting users through DeFi transactions.