A public disagreement between Justin Sun, founder of Tron, and WLFI, a crypto project linked to Trump, 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 penalize token holders who vote against it by locking their tokens indefinitely.
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 aims to overhaul token lockups, with over 62 billion WLFI tokens subject to new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely.
Sun's criticism has been echoed by other investors, including Simon Dedic, founder of Moonrock Capital, who described the move as 'rugging' early investors. A spokesperson for World Liberty Financial defended the proposal, stating that it is designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply'. The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months.
The tensions began when WLFI blacklisted a blockchain address linked to Sun and have since escalated, with both parties exchanging accusations and threats of legal action.