A public feud between Tron founder Justin Sun and the Trump-linked crypto project WLFI escalated on Wednesday, as 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 devising a vote that penalizes those who dissent, with token holders who oppose the proposal 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. Sun questioned the legitimacy of the vote, suggesting that control over the protocol lies 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 ecosystem, with over 62 billion WLFI tokens subject to new terms, including multi-year lockups and vesting schedules.
Insiders, such as team members, advisors, and partners, would face a two-year lockup followed by a three-year gradual release, alongside a 10% token burn upon opting in. Holders who do not accept the new terms would remain locked indefinitely.
Simon Dedic, founder of Moonrock Capital, also criticized the proposal, stating that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial argued that the proposal was designed to align all participants in the WLFI ecosystem for the long term, ensuring healthy market supply.
The backlash marks the latest episode in the deteriorating relationship between Sun and the project, which has been escalating for months.