A highly publicized dispute between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun vehemently denounced a recent governance proposal. Sun described the proposal as 'one of the most absurd governance scams' he has encountered, claiming it is designed to punish token holders who vote against it by locking their tokens indefinitely. He also alleged that he and other major holders were excluded from the voting process, with approximately 4% of the voting power under his control being frozen. Furthermore, 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 aims to overhaul token lockups across the WLFI ecosystem, subjecting over 62 billion tokens 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.
In response, a World Liberty Financial spokesperson defended the proposal, stating 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 escalating feud between Sun and WLFI, which has been building for months and has included allegations of exploitation and threats of legal action.