A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently denounced a new governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, claiming it is designed to penalize token holders who vote against it by indefinitely locking their tokens.
He also alleged that he and other major token holders have been 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 control over the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account capable of blacklisting 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.
Token holders who do not accept these new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the move. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align participants in the WLFI ecosystem for the long term and ensure healthy market supply.
This backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating over months and includes previous threats of legal action and accusations of user exploitation.