A bitter public feud between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated. Sun has strongly criticized a new governance proposal by WLFI, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize dissenting voices, with token holders who oppose the plan risking the indefinite lockup of their tokens.
Furthermore, Sun claimed that he and other significant holders have been excluded from the voting process, stating that tokens representing about 4% of the voting power under his control have been frozen. Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and another account with the power to blacklist users. He described the proposal as 'an exercise of power by a select few' aimed at consolidating power and expropriating property.
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. Tokens held by insiders would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Holders who reject the new terms would remain locked indefinitely. Sun is not alone in his criticism; Simon Dedic, founder of Moonrock Capital, also pushed back, stating that early investors have been 'rugged' by the Trump family themselves.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term, ensuring long-term participation and a healthy market supply. This backlash is the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating over months, including legal threats and public accusations of user exploitation.