A highly publicized dispute between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated after Sun publicly denounced a new governance proposal. Sun took to social media to express his strong opposition to the proposal, labeling it 'one of the most absurd governance scams' he has encountered. He alleged that token holders who vote against the proposal risk having their tokens locked indefinitely, and claimed that he and other major holders had been excluded from the voting process, with tokens representing around 4% of the voting power under his control being frozen. The proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules.
Insiders, such as team members, advisors, and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. The backlash against the proposal has been intense, with Simon Dedic, founder of Moonrock Capital, joining Sun in criticizing the move, stating that early investors had been 'rugged' by the Trump family themselves.
A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply. The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions building over the past few months. The conflict has been fueled by accusations of exploitation and misconduct, with both parties engaging in a war of words on social media.