A public feud between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI escalated on Wednesday, as Sun strongly condemned a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with their tokens being locked indefinitely. He also claimed that he and other major holders were excluded from the voting process, stating that tokens representing around 4% of the voting power under his control had been frozen.
Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests 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, with over 62 billion tokens subject 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, and a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely.
Sun's criticism was not isolated, as Simon Dedic, founder of Moonrock Capital, also pushed back against the proposal, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all 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 the project, which has been escalating over the past few months.