A highly publicized dispute between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently denounced a new governance proposal. Sun took to social media to express his disapproval, labeling the proposal as 'one of the most absurd governance scams' he has encountered. He alleged that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely, while also excluding large holders, including himself, from the voting process. Sun further 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 capable of blacklisting users.
The proposal in question seeks to overhaul token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms such as multi-year lockups and vesting schedules. Insiders, including team members, advisors, and partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in.
Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Token holders who do not accept the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also criticized the move, stating that early investors had been 'rugged' by the Trump family themselves.
In response, a World Liberty Financial spokesperson stated that the proposal is designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply. This backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, following earlier threats of legal action and a history of disputes over the project's handling of user funds and governance tokens.