Tron (CRYPTO: TRX) founder Justin Sun criticized a new governance proposal by Trump family-backed World Liberty Financial (WLFI) on Wednesday, deeming it a “power consolidation and property expropriation operation.”
Details Of Proposal
The proposal’s terms include a 2-year cliff and a 3-year linear vest for all 45.24 billion WLFI tokens held by advisors, institutions, partners, founders and team members. This means that tokens will begin to unlock in year 2 and will be fully distributed by year 5.
Upon passage, 10% of this allocation, up to 4.52 billion, will be burned and permanently removed from the token supply.
Early supporters, meanwhile, will have a shorter vesting schedule, with their 17.04 billion WLFI moving to a 2-year cliff followed by a 2-year linear vest. No tokens will be burned under this schedule.
“Holders who do not affirmatively accept this new vesting schedule will continue to have their tokens locked indefinitely,” the proposal read.
WLFI said that the proposal aims to establish a “structured vesting framework” and ensure the “ecosystem’s commitment to long-term governance and market supply.”
Sun Steps Up Attack
“The design of this proposal is a logical trap: anyone who votes against it has their tokens locked indefinitely with no unlock path whatsoever,” he alleged. “If you oppose this proposal, you get punished.”
Sun added that despite holding roughly 4% of the voting power, his tokens have been frozen, and he is “forced out” of the process.
World Liberty Financial didn’t immediately return Benzinga’s request for comment.
The platform has dismissed the allegations as “baseless” and threatened legal action.
Price Action: At the time of writing, WLFI was trading at $0.08101, up 0.76% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock/ noamgalai
