A public feud between Justin Sun, the founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun criticized a new governance proposal. Sun claimed the proposal is designed to punish token holders who vote against it by locking up their tokens indefinitely. He also alleged that he and other large holders had been excluded from the voting process, with around 4% of the voting power under his control being frozen.
The proposal in question would introduce new token lockup terms across the WLFI ecosystem, affecting over 62 billion tokens. Token holders who do not accept the new terms would remain locked out indefinitely. The plan includes multi-year lockups and vesting schedules, with insiders facing a two-year lockup and a 10% token burn. Sun described the proposal as 'an exercise of power by the selected few' and accused the project of engineering a 'power consolidation and property expropriation operation'.
His criticism was echoed by Simon Dedic, the founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for WLFI countered that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply'.
The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months. Earlier this week, WLFI threatened legal action against Sun, who had accused the project of exploiting users through DeFi transactions. The tensions between the two parties have been escalating since September, when WLFI blacklisted a blockchain address linked to Sun, and have now reached a boiling point.