A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun vehemently criticized a new governance proposal. Sun claims the proposal is designed to punish token holders who vote against it, with those dissenting facing indefinite token lockups. He also alleges that he and other significant holders have been excluded from the voting process, with tokens representing around 4% of the voting power under his control being frozen.
The proposal in question aims to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with 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 gradual release, alongside a 10% token burn for opting in.
Sun argues that this proposal is not genuine governance but rather an exercise of power by a select few to further consolidate their control and expropriate properties. His criticism is echoed by Simon Dedic, founder of Moonrock Capital, who believes early investors have been 'rugged' by the proposal.
In response, a spokesperson for World Liberty Financial stated that the proposal is intended to align all participants in the ecosystem for the long term, ensuring healthy market supply. This dispute is the latest in a series of disagreements between Sun and WLFI, with tensions building over the past months. The feud has seen WLFI threaten legal action against Sun and blacklist a blockchain address linked to him, marking a significant reversal from late 2024 when Sun was a key backer and advisor to the project.