A heated public dispute has erupted between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, following Sun's sharp criticism of a new governance proposal. Sun claimed that the proposal is designed to punish those who vote against it, with token holders facing indefinite lockups if they dissent.
He also alleged that he and other major holders have been excluded from the voting process, with tokens worth around 4% of the voting power under his control being frozen. The proposal in question would introduce new token lockup terms across the WLFI ecosystem, affecting over 62 billion tokens. Insiders, including team members and partners, would face a two-year lockup, followed by a three-year gradual release, as well as a 10% token burn.
Those who do not accept the new terms would remain locked indefinitely. Sun's criticism has been echoed by other figures in the crypto community, including Simon Dedic, the founder of Moonrock Capital, who described the move as a 'rug pull' that would allow the project to extract further value from investors. A spokesperson for World Liberty Financial, the company behind WLFI, defended the proposal, stating that it is intended to 'align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply'.
The dispute marks the latest escalation in the feud between Sun and WLFI, which has been building for months. The two parties have previously clashed over allegations of user exploitation and the project's governance structure, with WLFI threatening legal action against Sun earlier this week.