A heated dispute between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project with ties to the Trump family, has escalated following Sun's scathing critique of a recently introduced governance proposal. Sun took to social media to express his strong opposition to the proposal, labeling it as 'one of the most absurd governance scams' he has encountered.
He alleged that the proposal is designed to penalize token holders who vote against it, by subjecting their tokens to indefinite lockups. Furthermore, Sun claimed that he and other significant token holders had been excluded from the voting process, with approximately 4% of the voting power under his control being frozen. The proposal in question aims to overhaul token lockups within the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules.
Token holders who decline to accept these new terms would have their tokens locked indefinitely. The plan has been met with criticism not only from Sun but also from other industry figures, such as Simon Dedic, founder of Moonrock Capital, who described the move as 'rugging' early investors. In response, a spokesperson for World Liberty Financial defended the proposal, stating it was intended to align participants in the ecosystem for the long term and ensure a healthy market supply.
This latest development marks a new chapter in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months.