A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of designing a vote that penalizes token holders who oppose the proposal, potentially resulting in their tokens being locked indefinitely. He also alleged that he and other significant holders had been barred from participating in the process, claiming 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 lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users.
The proposal in question aims to overhaul token lockups across the WLFI ecosystem, subjecting over 62 billion tokens to new terms, including multi-year lockups and vesting schedules. Insiders, such as team members and advisors, would face a two-year lockup, followed by a three-year gradual release, alongside a 10% token burn upon opting in.
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 defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply.
The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months.