A public dispute between Tron founder Justin Sun and the Trump-linked crypto project WLFI escalated on Wednesday, as Sun strongly condemned a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the project's proposal is designed to punish token holders who vote against it, with those who dissent facing the risk of having their tokens locked up indefinitely.
Furthermore, Sun claimed that he and other significant holders had been excluded from the voting process, stating that tokens equivalent to roughly 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting that true control over the protocol rests with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the power to blacklist users. 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. Token holders who do not accept the new terms would remain locked indefinitely.
The backlash against the proposal is not limited to Sun, with other figures in the crypto space, such as Simon Dedic, founder of Moonrock Capital, also speaking out against it. A spokesperson for World Liberty Financial defended the proposal, stating that it is designed to align all participants in the WLFI ecosystem for the long term and ensure a healthy market supply.
The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months and includes previous accusations of user exploitation and threats of legal action.