A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated following Sun's sharp criticism of a recent governance proposal. Sun has labeled the proposal as 'one of the most absurd governance scams' he has encountered, alleging that it is designed to punish dissenting voices by locking up their tokens indefinitely.
He also claims that he and other major token holders have been excluded from the voting process, with tokens equivalent to about 4% of the voting power under his control being frozen. Furthermore, Sun questions 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 capable of blacklisting users.
The proposal in question aims to overhaul 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 partners, 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. The criticism has been echoed by other figures, including Simon Dedic, founder of Moonrock Capital, who believes early investors have been 'rugged' by the proposal.
In response, a spokesperson for World Liberty Financial stated that the proposal is intended to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and WLFI, which has been escalating over the past months following accusations of user exploitation and the blacklisting of a blockchain address linked to Sun.