A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has intensified after Sun strongly condemned a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has seen, alleging that it is designed to punish token holders who vote against it by locking their tokens indefinitely.
He also claimed that he and other major holders were excluded from the voting process, with around 4% of the voting power under his control being frozen. 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.
The proposal in question would introduce new token lockup terms across the ecosystem, affecting over 62 billion WLFI tokens. Insiders, including team members and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn. Holders who do not accept the new terms would have their tokens locked indefinitely. The plan has drawn criticism from other investors, including Simon Dedic, founder of Moonrock Capital, who described it as a 'rug pull' that would allow the project to extract more value from 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 feud between Sun and WLFI, which has been building for months and has included accusations of exploiting users and threats of legal action.