A public feud between Tron's Justin Sun and WLFI has escalated after Sun criticized a new governance proposal, labeling it as one of the most 'absurd' he has encountered. In a post, Sun accused WLFI of designing a vote that penalizes token holders who oppose the proposal, risking indefinite token lockups. He also claimed that his own tokens, representing about 4% of the voting power, had been frozen, excluding him and other large holders from the process.
Sun questioned the legitimacy of the vote, suggesting that control lies with anonymous wallet addresses, including a multisignature setup that can override outcomes. The proposal in question would introduce new token lockup terms across the ecosystem, affecting over 62 billion WLFI tokens.
Insiders would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn. Token holders who reject the new terms would remain locked indefinitely.
Sun is not alone in his criticism, with Simon Dedic of Moonrock Capital stating that early investors have been 'rugged' by the Trump-affiliated project. A spokesperson for World Liberty Financial defended the proposal, saying it aims to 'further align all participants in the WLFI ecosystem for the long-run'.
The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months. The dispute began when WLFI blacklisted a blockchain address linked to Sun, and tensions intensified after the project deposited its own tokens into a lending protocol and borrowed stablecoins, triggering a significant price drop.