A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has seen. In a post on X, Sun alleged that the proposal is designed to punish those who vote against it, with token holders facing indefinite token lockups. He also claimed that he and other major holders have been 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, arguing that control of the protocol rests 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 would 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 advisors, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. 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 argued that the proposal 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, which has been escalating over the past few months.