A public disagreement between Tron founder Justin Sun and the Trump-linked cryptocurrency project WLFI intensified on Wednesday, as Sun strongly condemned a newly introduced governance proposal, labeling it as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun accused WLFI of devising a voting system that penalizes those who oppose the proposal, with token holders who vote against it risking the indefinite lockup of their tokens. Furthermore, Sun claimed that he and other major token holders had been excluded from the decision-making process, stating that tokens representing approximately 4% of the voting power under his control had been frozen. Sun also 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 capable of blacklisting users.
According to Sun, 'this proposal is not about governance, but rather an exercise of power by a select few who are carefully orchestrating a further consolidation of power and expropriation of property.' The criticism revolves around WLFI's new proposal, which would overhaul token lockups across the ecosystem, affecting over 62 billion WLFI tokens with new terms, including multi-year lockups and vesting schedules. Under the plan, tokens held by insiders, such as team members, advisors, and partners, would be subject to a two-year lockup, followed by a three-year gradual release, and a 10% token burn upon opting in.
Early supporters would face slightly shorter vesting terms but no burn, with up to 4.5 billion tokens potentially being permanently destroyed. Token holders who do not accept the new terms would remain locked indefinitely, as per the proposal.
Sun's concerns were echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the Trump family. A spokesperson for World Liberty Financial told CoinDesk that the proposal was designed to 'further align all participants in the WLFI ecosystem for the long term,' aiming to 'optimally ensure long-term participation in our ecosystem and maintain a healthy market supply.' The backlash marks the latest development in the deteriorating relationship between Sun and the project, with tensions escalating over the past few months.