A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun vehemently criticized a new governance proposal. Sun described 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 major holders had been excluded from the voting process, with tokens representing around 4% of the voting power under his control being frozen.
Sun questioned the legitimacy of the vote, suggesting that control of 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 WLFI proposal aims to overhaul token lockups across the ecosystem, subjecting over 62 billion WLFI tokens to new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely.
The proposal has been met with criticism from 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 intended to align all participants in the WLFI ecosystem for the long term and ensure healthy market supply.
The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months. The dispute began when WLFI blacklisted a blockchain address linked to Sun and has since escalated, with both parties exchanging accusations and threats of legal action.