A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, has escalated after Sun condemned a new governance proposal as 'one of the most absurd governance scams' he has encountered. Sun accused WLFI of designing a vote that penalizes token holders who oppose the proposal, risking indefinite token lockups. He also alleged that he and other major holders were excluded from the process, with roughly 4% of 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.
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. Insiders, such as team members and partners, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn.
Holders who do not accept the new terms would remain locked indefinitely. Other critics, including Simon Dedic, founder of Moonrock Capital, have also pushed back against the proposal, with Dedic stating that early investors had been 'rugged' by the Trump family.
A spokesperson for World Liberty Financial defended the proposal, stating it was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply'. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions building over the past few months. The dispute has been fueled by accusations of exploitation and misconduct, with both parties exchanging public criticisms and threats of legal action.