Justin Sun, the founder of Tron, has publicly denounced a recent governance proposal by WLFI, describing it as one of the most absurd governance scams he has encountered. In a post, Sun claimed that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely. He also alleged that he and other major holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes.
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, and a 10% token burn. Holders who do not accept the new terms would remain locked indefinitely.
Sun's criticism is not isolated, as other investors, including Simon Dedic, founder of Moonrock Capital, have also expressed opposition to the proposal, describing it as an attempt to extract value from investors. A spokesperson for WLFI defended the proposal, stating that it is intended to align all participants in the ecosystem for the long term and ensure healthy market supply.
The dispute between Sun and WLFI has been escalating, with the project threatening legal action against Sun earlier in the week.