A public spat between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun publicly condemned a newly introduced governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, claiming it unfairly targets dissenting token holders by subjecting them to indefinite token lockups.
Furthermore, he alleged that he and other major holders have been barred from the voting process, with approximately 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that actual control over the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and an account with the power to blacklist users.
The proposal in question seeks 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 three-year release, alongside a 10% token burn for opting in. Early supporters would have slightly shorter vesting terms without the burn, potentially resulting in the permanent destruction of up to 4.5 billion tokens. Token holders who decline 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. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term, ensuring healthy market supply. The backlash marks the latest escalation in the feud between Sun and WLFI, which has been building over months following disagreements over the project's handling of user funds and governance.