A heated dispute between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun lambasted a proposed governance overhaul 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 facing indefinite lockup. He also claimed that he and other significant holders had been barred from participating in the process, with approximately 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that actual control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account capable of blacklisting users.
The proposal in question aims to reform 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. Sun's criticism has been echoed by other figures, including Simon Dedic, founder of Moonrock Capital, who described the move as effectively 'rugging' early investors.
A spokesperson for World Liberty Financial defended the proposal, stating it was intended to align participants in the ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been building for months and has included accusations of user exploitation and threats of legal action.