A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently criticized a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, alleging that it is designed to punish token holders who vote against it by locking their tokens indefinitely.
He also claimed that he and other major holders have been excluded from the voting process, with tokens representing 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 would 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 face indefinite lockups.
Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the ecosystem for the long term and ensure healthy market supply. The dispute marks the latest escalation in the deteriorating relationship between Sun and WLFI, which has been building for months and includes previous accusations of user exploitation and legal threats.