A public spat between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI intensified on Wednesday, as Sun strongly denounced a newly introduced governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with those opposed to the proposal facing the risk of having their tokens locked up indefinitely.
Furthermore, he claimed that he, along with other major token holders, had been excluded from the decision-making process, stating that tokens representing approximately 4% of the voting power under his control had been frozen. Sun also raised concerns about 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, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Token holders who decline to accept the new terms would remain locked indefinitely.
Sun's criticism was not isolated, as other figures, such as Moonrock Capital founder Simon Dedic, also expressed disapproval, with Dedic stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the ecosystem for the long term and ensure a healthy market supply. The backlash marks the latest development in the deteriorating relationship between Sun and the project, which has been escalating over the past few months.