A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has escalated after Sun denounced a new governance proposal as a scam. Sun claimed that the proposal is designed to punish token holders who vote against it by locking their tokens indefinitely and excluding large holders, including himself, from the voting process. He also questioned the authority of the vote, alleging that control over the protocol lies with anonymous wallet addresses. The proposal in question aims to overhaul token lockups, with over 62 billion WLFI 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 accused the project of 'rugging' early investors.
A spokesperson for WLFI countered that the proposal is intended to align all participants in the ecosystem for the long term and ensure a healthy market supply. The dispute marks the latest episode in the breakdown of relations between Sun and WLFI, which has been building for months.