A public feud between Tron founder Justin Sun and Trump-linked cryptocurrency project WLFI has intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with those who dissent facing indefinite token lockups.
He also claimed that he and other major holders have been excluded from the voting process, with tokens representing approximately 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, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules.
Insiders, such as team members and advisors, would face a two-year lockup, followed by a three-year gradual release, alongside a 10% token burn. Holders who do not accept the new terms would remain locked indefinitely. The criticism has been echoed by other figures in the cryptocurrency space, including Simon Dedic, founder of Moonrock Capital, who described the move as 'rugging' early investors.
A spokesperson for WLFI has defended the proposal, stating that it is designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply.' The dispute marks the latest escalation in a feud between Sun and WLFI, which has been building for months. Earlier this week, WLFI threatened legal action against Sun, who had accused the project of exploiting users through DeFi transactions.
The tensions between the two parties have been simmering since September, when WLFI blacklisted a blockchain address linked to Sun, and have intensified in recent weeks.