Justin Sun, the founder of Tron, has publicly denounced a governance proposal by WLFI, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with their tokens potentially being locked indefinitely. He also claimed that he and other significant holders have been barred from participating in the process, with approximately 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that control of 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 seeks 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, according to the proposal. Sun's criticism is not isolated, as other figures, such as Simon Dedic, founder of Moonrock Capital, have also expressed disapproval, stating that early investors have been 'rugged' by the move.
A spokesperson for World Liberty Financial defended the proposal, stating that it is intended to align all participants in the WLFI ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.