A heated dispute between Tron's Justin Sun and WLFI has escalated after Sun condemned the project's latest governance proposal, labeling it a 'governance scam'. Sun claimed that token holders who vote against the proposal risk having their tokens locked up indefinitely, while also alleging that he and other large holders were excluded from the voting process. The proposal in question aims to overhaul token lockups, with over 62 billion WLFI tokens set to be 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 argued that the proposal is not a genuine governance effort, but rather an attempt by a select group to consolidate power and expropriate property. WLFI, on the other hand, claims that the proposal is designed to align all participants in the ecosystem for the long term, ensuring optimal market supply and healthy participation. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, with tensions having been building for months over issues such as DeFi transactions and token blacklisting.