A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. Sun's criticism centers on the proposal's plan to overhaul token lockups, which would subject over 62 billion WLFI tokens to new terms, including multi-year lockups and vesting schedules. Token holders who vote against the proposal risk having their tokens locked indefinitely. Sun claims that this move is an attempt to consolidate power and that he, along with other large token holders, has been excluded from the voting process.
He also questions the authority of the vote, suggesting that control of the protocol lies with anonymous wallet addresses. The proposal has been defended by WLFI as a measure to 'align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply.' However, critics, including Simon Dedic, founder of Moonrock Capital, have argued that the proposal unfairly targets early investors and is an example of 'blatant misconduct.' The dispute between Sun and WLFI has been ongoing for months, with tensions escalating after WLFI blacklisted a blockchain address linked to Sun and deposited its own tokens into a lending protocol, triggering a significant price drop.