A highly publicized dispute between Tron founder Justin Sun and the Trump-linked crypto project WLFI has escalated, with Sun condemning a recent governance proposal as one of the most 'absurd' he has seen. In a detailed post, Sun alleged that the proposal is designed to punish token holders who vote against it, with the potential for indefinite token lockups. He also claimed that he and other major holders have been excluded from the voting process, with roughly 4% of the voting power under his control being frozen.
Sun questioned the legitimacy of the vote, suggesting that control of 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 aims 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 do not accept the 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 proposal.
A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to align all participants in the WLFI ecosystem for the long term and ensure healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months and has included threats of legal action and the blacklisting of a blockchain address linked to Sun.