A very public disagreement between Tron's Justin Sun and the Trump-affiliated cryptocurrency project WLFI intensified on Wednesday, as Sun strongly criticized a newly proposed governance plan, labeling it as 'one of the most absurd governance scams' he has encountered. In a lengthy post, Sun alleged that the project's voting system is designed to penalize dissenters, with token holders who vote against the proposal facing the risk of having their tokens locked up indefinitely. Furthermore, Sun claimed that he and other major token holders had been 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 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.
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 that it was designed to align participants in the WLFI ecosystem for the long term, ensuring healthy market supply. The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months.