A public feud between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun denounced a new governance proposal as one of the most absurd he has encountered. In a detailed post, Sun accused WLFI of designing a vote that penalizes token holders who oppose the proposal, risking the indefinite lockup of their tokens.
He also alleged that he and other significant holders were excluded from the voting process, with tokens representing about 4% of the voting power under his control being 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 WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules.
Insiders, such as team members and partners, would face a two-year lockup followed by a gradual release, alongside a 10% token burn for opting in. Token holders who do not accept the new terms would remain locked indefinitely. The criticism has been echoed by others, including Simon Dedic, founder of Moonrock Capital, who believes early investors have been 'rugged' by the move.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the ecosystem for the long term and ensure a healthy market supply. The dispute marks the latest escalation in the breakdown of relations between Sun and WLFI, which has been building for months and includes previous accusations of user exploitation and legal threats.