A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has intensified after Sun denounced a recent governance proposal, labeling it one of the most 'absurd' he has encountered. In a detailed post, Sun accused WLFI of devising a voting system that penalizes token holders who oppose the proposal, potentially resulting in their tokens being locked indefinitely. Furthermore, Sun alleged that he and other significant holders were barred from participating in the process, claiming that tokens equivalent to approximately 4% of the voting power under his control had been frozen.
Sun also questioned the legitimacy of the vote, suggesting that control of the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and a separate account with the authority to blacklist users. The proposal in question seeks to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Token holders who decline to accept the new terms would remain locked indefinitely, according to the proposal. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the move.
A spokesperson for World Liberty Financial maintained that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run', aiming to 'optimally ensure long-term participation in our ecosystem and help ensure healthy market supply'. The backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.