A public dispute has escalated between Tron founder Justin Sun and the Trump-linked crypto project WLFI after Sun harshly criticized a new governance proposal. Sun accused the project of creating a vote that penalizes those who dissent, with token holders who oppose the proposal facing potential indefinite token lockups. He also alleged that he and other major holders were excluded from the process, claiming that tokens representing about 4% of the voting power under his control had been frozen. Furthermore, Sun questioned the legitimacy of the vote, stating that control of 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, with over 62 billion WLFI tokens subject to 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 Trump family.
A spokesperson for World Liberty Financial defended the proposal, saying it was designed to align all participants in the WLFI ecosystem for the long term. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months.