A public feud between Tron founder Justin Sun and the Trump-linked crypto project WLFI has intensified after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post on X, Sun claimed that the proposal is designed to punish token holders who vote against it, with those holding out facing the risk of having their tokens locked indefinitely. He also alleged that he and other major holders had 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, suggesting 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 seeks to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens set to be subject to new terms, including multi-year lockups and vesting schedules. Token holders who decline to accept the new terms would remain locked out indefinitely, according to the proposal. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial defended the proposal, stating that 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 development in the deteriorating relationship between Sun and the project, which has been building for months and has included accusations of user exploitation and threats of legal action.