A public feud between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to Trump, has escalated further after Sun denounced a recent governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of designing a vote that penalizes those who oppose the proposal, with their tokens potentially being locked indefinitely. He also alleged that he and other significant holders were barred from the voting process, claiming that tokens representing about 4% of the voting power under his control had been frozen. Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and another account with the power to blacklist users.
'This is not governance,' Sun stated, 'but an exercise of power by a select few to further consolidate power and expropriate property.' The controversy revolves around WLFI's proposal to overhaul token lockups, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules. Insiders would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Holders who reject the new terms would remain locked indefinitely. Sun is not alone in his criticism; Simon Dedic, founder of Moonrock Capital, expressed that early investors had been 'rugged' by the proposal, which he believes gives the project another opportunity to extract value from investors.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, following earlier threats of legal action and a history of tension that has been building over months.