A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently criticized a new governance proposal. Sun took to social media to express his dissent, labeling the proposal as 'one of the most absurd governance scams' he has encountered.
He alleged that the proposal is designed to penalize token holders who vote against it, with their tokens potentially being locked indefinitely. Furthermore, Sun claimed that he and other significant holders have been excluded from the voting process, with tokens representing around 4% of the voting power under his control being frozen.
The proposal in question aims to restructure token lockups across the WLFI ecosystem, affecting over 62 billion tokens with new terms including multi-year lockups and vesting schedules. Insiders, such as team members and advisors, would face a two-year lockup followed by a gradual release over three years, along with a 10% token burn for opting in. Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed.
Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating it was designed to align all participants in the WLFI ecosystem for the long term, ensuring healthy market supply. This backlash marks the latest escalation in the deteriorating relationship between Sun and WLFI, following threats of legal action and a history of disputes over the project's handling of user funds and governance.