A highly publicized dispute between Tron founder Justin Sun and the crypto project WLFI has intensified after Sun vehemently denounced a newly introduced governance proposal. Sun's criticism centers on the proposal's alleged attempt to coerce token holders into accepting its terms by threatening to lock up their tokens indefinitely if they vote against it.
He also claims that he and other major token holders have been excluded from the voting process, with a significant portion of his tokens being frozen. Furthermore, Sun questions the legitimacy of the vote, suggesting that true control over the protocol lies with anonymous wallet addresses that can override outcomes and blacklist users.
The proposal in question seeks to overhaul token lockups, affecting over 62 billion WLFI tokens with new terms including multi-year lockups and vesting schedules. Token holders who refuse to accept these new terms would face indefinite lockups. Sun's views are echoed by other critics, including Simon Dedic, founder of Moonrock Capital, who believes early investors have been unfairly treated. In response, a spokesperson for World Liberty Financial claims the proposal is designed to align all participants in the WLFI ecosystem for long-term success and ensure a healthy market supply.
This escalation is the latest in a series of disputes between Sun and the project, which have been ongoing for months and include accusations of user exploitation and legal threats.