A highly publicized dispute between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated after Sun publicly denounced a new governance proposal. Sun claims the proposal is designed to punish token holders who dissent, with those voting against it facing indefinite token lockups. He also alleges that large holders, including himself, have been excluded from the voting process, with roughly 4% of the voting power under his control being frozen. 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. Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Sun's criticism centers on the proposal's potential to consolidate power and expropriate property, stating that it is not a genuine governance proposal but rather an exercise of power by a select few. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions building over the past few months.
The dispute has been fueled by accusations of exploitation and misconduct, with both parties trading public barbs and legal threats.