A highly publicized dispute between Justin Sun, the founder of Tron, and the Trump-linked cryptocurrency project WLFI has intensified following Sun's sharp criticism of a newly proposed governance structure. Sun has described the proposal as 'one of the most absurd governance scams' he has encountered, alleging that it is designed to punish token holders who vote against it by locking their tokens indefinitely.
Furthermore, he claims that he and other significant holders have been excluded from the voting process, with tokens representing 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. Insiders, such as team members and partners, would face a two-year lockup followed by a gradual release over three years, alongside a 10% token burn for those who opt in. Sun's criticism is not isolated, as other figures in the cryptocurrency space, like Simon Dedic of Moonrock Capital, have also expressed opposition, stating that early investors have been 'rugged' by the proposal.
In response, a spokesperson for World Liberty Financial has stated that the proposal is intended to align participants in the ecosystem for the long term, ensuring healthy market supply. This latest development marks an escalation in the feud between Sun and WLFI, which has been building over months and includes previous threats of legal action and significant financial transactions that have impacted the project's token value.