Proposal to Buy Back and Burn WLFI Tokens
World Liberty Financial, the Trump family-backed decentralized finance (DeFi) project, has unveiled a governance proposal that could reshape its tokenomics. The plan suggests using 100% of protocol-owned liquidity fees across Ethereum, BNB Chain, and Solana to buy back WLFI tokens from the market and permanently burn them.
If approved, the mechanism would reduce WLFI’s circulating supply, strengthen long-term holders’ positions, and link platform usage directly to token scarcity. The project stated that this approach would reward committed investors while discouraging short-term sellers.
Community Reaction to the Token Burn Strategy
The proposal has sparked strong interest from the WLFI community. Many commenters voiced support for going “all-in” on burning tokens instead of splitting fees between treasury operations and buybacks. WLFI ambassador “Tespmoore” highlighted that other options, such as a 50/50 split, were considered but ultimately dismissed.
However, uncertainties remain. The proposal does not clarify the exact amount of fees available for burning, making it difficult to predict the long-term supply impact. Critics also pointed out the absence of a contingency plan if the treasury requires emergency funds after allocating all fees to burning.
Major Token Unlock Boosts Trump Holdings
On launch day, WLFI saw a massive token unlock of 24.6 billion tokens, which significantly expanded circulating supply. This event increased the Trump family’s holdings to roughly $5 billion, despite earlier statements that founder allocations—including those of Donald Trump, Donald Trump Jr., Barron Trump, and Eric Trump—would remain locked at the start.
Currently, WLFI has 27.3 billion tokens in circulation out of a total 100 billion supply, with a market capitalization of about $6.6 billion.
WLFI Price Drops After Exchange Debut
WLFI’s market debut has been rocky. Following its listing, the token price dropped sharply as short sellers cashed out. WLFI fell around 36% from its peak of $0.331 to a low of $0.210 before stabilizing near $0.229—still down nearly 30% on the day.
The proposed token burn program is positioned as a key strategy to address this early price pressure by reducing sell-side liquidity and creating long-term value for holders.
