A very public disagreement between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has taken a dramatic turn. Sun has come out strongly against a new governance proposal put forward by WLFI, labeling it as 'one of the most absurd governance scams' he has ever seen. The proposal, which would introduce new token lockup terms across the WLFI ecosystem, has been met with significant criticism from Sun and other major token holders.
They argue that the proposal is designed to punish those who vote against it, with the threat of indefinite token lockups for dissenters. Furthermore, Sun claims that he and other large holders have been excluded from the voting process, with tokens worth around 4% of the voting power under his control allegedly frozen. The WLFI proposal aims to overhaul token lockups, with over 62 billion tokens set to be 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, as well as a 10% token burn. Early supporters would have slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Sun's criticism has been echoed by other figures in the cryptocurrency space, including Simon Dedic, founder of Moonrock Capital, who accused the Trump family of 'rugging' early investors.
In response, a spokesperson for World Liberty Financial stated that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run', aiming to 'optimally ensure long-term participation in our ecosystem and help ensure healthy market supply'. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions having been building for months. The dispute has seen WLFI threaten legal action against Sun, who has accused the project of exploiting users through DeFi transactions. The conflict has significant implications for the future of the WLFI project and the wider cryptocurrency market.