A heated public dispute between Tron founder Justin Sun and the Trump-linked crypto project WLFI has escalated, with Sun strongly condemning a new governance proposal. Sun labeled the proposal as 'one of the most absurd governance scams' he has encountered, alleging that it is designed to punish token holders who vote against it by locking their tokens indefinitely. He also claimed that he and other large token holders have been excluded from the voting process, with roughly 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 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.
Token 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. In response, a World Liberty Financial spokesperson said the proposal was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply.' The feud between Sun and WLFI has been intensifying, with the project threatening legal action earlier in the week and a history of disputes dating back months.