A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has seen. In a post, Sun alleged that the proposal punishes token holders who vote against it by locking their tokens indefinitely and excludes large holders from the voting process. He claimed that tokens representing around 4% of the voting power under his control had been frozen.
Sun questioned the legitimacy of the vote, stating that control over the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes. The proposal in question would overhaul token lockups across the WLFI ecosystem, subjecting over 62 billion tokens to 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 three-year gradual release, alongside a 10% token burn upon opting in. Token holders who do not accept the new terms would remain locked indefinitely.
Simon Dedic, founder of Moonrock Capital, also criticized the proposal, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, saying it was designed to align 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 WLFI, which has been building for months.