A public feud between Justin Sun, founder of Tron, and WLFI, a crypto project linked to the Trump family, has intensified after Sun denounced a new governance proposal. In a post, Sun called the proposal 'one of the most absurd governance scams' he has seen, alleging it is designed to punish token holders who vote against it by locking their tokens indefinitely.
He also claimed that he and other large token holders have been excluded from the voting process, with around 4% of the voting power under his control frozen. Sun questioned the legitimacy of the vote, suggesting that control of the protocol lies with anonymous wallet addresses, including a multisignature setup that can override outcomes.
The proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion 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. The plan 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 WLFI defended the proposal, stating it is designed to align participants in the ecosystem for the long term and ensure a healthy market supply.
The dispute marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months. The tensions began when WLFI blacklisted a blockchain address linked to Sun and escalated after WLFI deposited its own tokens into a lending protocol and borrowed stablecoins, triggering a price drop and accusations of exploiting users.