A public spat between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, escalated on Wednesday after Sun criticized a new governance proposal, labeling it as one of the most 'absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely.
He also claimed that he and other significant holders had been excluded from the voting process, stating that tokens representing around 4% of the voting power under his control had been frozen. Furthermore, Sun questioned the legitimacy of the vote, suggesting that control of the protocol lies 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 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 advisors, would face a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal. A spokesperson for World Liberty Financial defended the proposal, saying it was designed to align participants in the WLFI ecosystem for the long term and ensure a healthy market supply.
The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months and has included accusations of exploiting users and threats of legal action.