A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI intensified on Wednesday, as Sun strongly condemned a newly introduced governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a lengthy post, Sun accused the project of devising a voting system that penalizes token holders who vote against the proposal, putting their tokens at risk of being locked indefinitely. He also claimed that he and other significant holders had been barred from participating in the process, stating that tokens representing approximately 4% of the voting power under his control had been frozen.

Sun further questioned the legitimacy of the vote, suggesting that control over the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The proposal in question seeks 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, 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 destroyed permanently. Token holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was not isolated, as Simon Dedic, founder of Moonrock Capital, also pushed back, stating that early investors had been 'rugged' by the Trump family.

A spokesperson for World Liberty Financial defended the proposal, saying it 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 episode in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.