A public feud between Justin Sun, founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has intensified after Sun lambasted a new governance proposal, labeling it '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, potentially resulting in their tokens being locked indefinitely. He also alleged that his own tokens, representing about 4% of the voting power, had been frozen, excluding him and other major holders from the process. 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 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, including multi-year lockups and vesting schedules. Tokens held by insiders would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Holders who do not accept these terms would remain locked indefinitely. The backlash against the proposal is not isolated, with Simon Dedic, founder of Moonrock Capital, also criticizing the move, stating that early investors had been 'rugged' by the Trump family themselves.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The dispute marks the latest escalation in the deteriorating relationship between Sun and WLFI, which has been building over months, including a previous blacklisting of a blockchain address linked to Sun and accusations of user exploitation through DeFi transactions.