A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a post, Sun alleged that the proposal is designed to punish token holders who vote against it, with those who dissent facing indefinite token lockups.
He also claimed that he and other major holders have been excluded from the voting process, with around 4% of the voting power under his control being frozen. Sun questioned the legitimacy of the vote, stating that control of the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes.
The proposal in question would introduce new token lockup terms across the ecosystem, affecting over 62 billion WLFI tokens. Insiders, including team members and partners, would face a two-year lockup, followed by a gradual release over three years, and a 10% token burn. 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 defended the proposal, saying it aims 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 building for months. Earlier this week, WLFI threatened legal action against Sun, who had accused the team of exploiting users through DeFi transactions.
The dispute began in September when WLFI blacklisted a blockchain address linked to Sun, and has since escalated, with tensions intensifying after WLFI deposited its own tokens into a lending protocol and borrowed stablecoins, triggering a significant decline in token value.