A public feud between Justin Sun, founder of Tron, and the Trump-linked cryptocurrency project WLFI has intensified after Sun publicly denounced a new governance proposal. Sun claimed that the proposal is designed to punish token holders who vote against it, with the potential for indefinite token lockups.
He also alleged that he and other major token holders were excluded from the voting process, with approximately 4% of the voting power under his control being frozen. The proposal in question aims 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 face indefinite lockups.
Sun's criticism has been echoed by other figures in the cryptocurrency community, including Simon Dedic, founder of Moonrock Capital, who accused the project of 'rugging' early investors. 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 dispute marks the latest escalation in the breakdown of relations between Sun and the project, which has been building for months.