A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun strongly condemned a proposed governance overhaul, labeling it '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, risking the indefinite lockup of their tokens. He also claimed that he and other major holders have been excluded from the voting process, with approximately 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 and a separate account with the power to blacklist users.
The proposal in question aims to restructure token lockups across the WLFI ecosystem, affecting over 62 billion tokens with 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 gradual release over three years, alongside a 10% token burn for opting in.
Holders who do not accept the new terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also criticized the proposal, stating that early investors have been 'rugged' by the Trump family.
A spokesperson for World Liberty Financial defended the proposal, stating it is designed to align participants for the long term and ensure healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months and includes previous threats of legal action and the blacklisting of a blockchain address linked to Sun.