A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun strongly condemned a new governance proposal. Sun claimed the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely. He also alleged that he and other major holders have been excluded from the voting process, with roughly 4% of the voting power under his control being frozen.
The proposal in question would subject over 62 billion WLFI tokens to new lockup terms, including multi-year lockups and vesting schedules. Token holders who refuse to accept the new terms would have their tokens locked indefinitely. Sun argued that this proposal is not a genuine governance effort but rather an attempt by a select group to consolidate power and expropriate property.
The WLFI project, however, stated that the proposal is intended to align all participants in the ecosystem for the long term, ensuring optimal long-term participation and a healthy market supply. This dispute is the latest in a series of escalating tensions between Sun and WLFI, which have been building over months and include accusations of exploiting users through DeFi transactions and legal threats.