A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI escalated on Wednesday after Sun vehemently denounced a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of devising a voting system that penalizes token holders who oppose the proposal, with those who vote against it risking indefinite token lockups.
Furthermore, Sun claimed that he and other significant token holders had been excluded from the voting process, alleging that tokens representing approximately 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting that control over the protocol rests with anonymous wallet addresses, including a multisignature setup capable of overriding 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 decline to accept the new terms would remain locked indefinitely. Sun's criticism was not isolated, as Simon Dedic, founder of Moonrock Capital, also expressed concerns, stating that early investors had been 'rugged' by the Trump family.
A spokesperson for World Liberty Financial argued that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run', aiming to 'optimally ensure long-term participation in our ecosystem and help ensure healthy market supply'. The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months.