A public spat between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, intensified on Wednesday as Sun denounced a new governance proposal as one of the most absurd he has seen. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, with their tokens potentially being locked indefinitely.
He also claimed that he and other major holders were excluded from the voting process, with tokens representing around 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 with the power to blacklist 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, saying it was designed to align all participants in the WLFI ecosystem for the long term. The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been escalating over the past few months.