A public dispute between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI has escalated after Sun strongly condemned a new governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused the project of designing a vote that penalizes token holders who oppose the proposal, with those who vote against it risking indefinite token lockups. He also alleged that he and other significant holders had been excluded from the process, claiming that tokens representing approximately 4% of the voting power under his control had been 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, subjecting over 62 billion 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 criticism has sparked a backlash, with Simon Dedic, founder of Moonrock Capital, stating that early investors had been 'rugged' by the Trump family. A World Liberty Financial spokesperson countered that the proposal was designed to align all participants in the WLFI ecosystem for the long term, ensuring optimal long-term participation and healthy market supply.
The dispute marks the latest episode in the deteriorating relationship between Sun and the project, which has been building for months.