A public disagreement between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun strongly condemned a new governance proposal. Sun labeled the proposal as 'one of the most absurd governance scams' he has encountered, stating that it is designed to penalize token holders who vote against it by locking their tokens indefinitely. He also alleged that large token holders, including himself, have been excluded from the process, with around 4% of the voting power under his control being frozen. Furthermore, Sun questioned the legitimacy of the vote, suggesting that control over the protocol rests with anonymous wallet addresses, including a multisignature setup and a separate account with the power to blacklist users.
In response, a spokesperson for World Liberty Financial stated that the proposal is intended to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply. The criticism revolves around WLFI's proposal to overhaul token lockups, affecting over 62 billion tokens with new terms, including multi-year lockups and vesting schedules.
Token holders who do not accept the new terms would remain locked indefinitely. The backlash is the latest development in the escalating feud between Sun and WLFI, which has been building for months and includes previous disputes over DeFi transactions and token blacklisting.