A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has escalated 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 those who vote against it, with token holders facing the risk of having their tokens locked indefinitely. He also claimed that he and other significant holders were excluded from the voting process, stating that tokens representing approximately 4% of the voting power under his control had been 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 and a separate account with the power to blacklist users.
The proposal in question aims to overhaul token lockups across the ecosystem, affecting over 62 billion WLFI tokens with new terms including multi-year lockups and vesting schedules. Insiders, such as team members, advisors, and partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Sun's criticism was not isolated, as Simon Dedic, founder of Moonrock Capital, also expressed concerns, stating that early investors had been 'rugged' by the proposal. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long run, ensuring long-term participation and a healthy market supply.
This latest development marks an escalation in the feud between Sun and WLFI, which has been building over several months.