A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun strongly denounced a new governance proposal. Sun accused WLFI of devising a vote that penalizes token holders who oppose the proposal, potentially locking their tokens indefinitely. He also alleged that he and other major holders were excluded from the voting process, with approximately 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, suggesting that true control over the protocol lies with anonymous wallet addresses, including a multisignature setup capable of overriding outcomes and an account with the power to blacklist users.
He stated, 'This proposal is not about governance; it's an exercise of power by a select few to further consolidate power and expropriate property.' 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. Tokens held by insiders would face a two-year lockup followed by a gradual three-year release, along with a 10% token burn for opting in. Holders who do not accept these terms would remain locked indefinitely. Simon Dedic, founder of Moonrock Capital, also criticized the move, saying early investors had been 'rugged' by the Trump family.
A spokesperson for World Liberty Financial defended the proposal, saying it was designed to align participants for the long term and ensure a healthy market supply. This backlash marks the latest escalation in the deteriorating relationship between Sun and WLFI, which has been building over months and includes previous threats of legal action and the blacklisting of a blockchain address linked to Sun.