A public feud between Tron founder Justin Sun and the Trump-linked crypto project WLFI escalated on Wednesday, as Sun strongly criticized a new governance proposal. In a post, Sun accused the project of designing a vote that penalizes those who oppose it, with token holders who vote against the proposal facing potential token lockups. He also alleged that he and other major holders had been excluded from the process, claiming that tokens representing around 4% of the voting power under his control had been frozen.
Sun questioned the legitimacy of the vote, arguing that control over the protocol rests with anonymous wallet addresses. The proposal in question would overhaul token lockups across the ecosystem, with over 62 billion WLFI 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 said the proposal was designed to align participants in the WLFI ecosystem for the long term, ensuring healthy market supply. The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months.