World Liberty Burns 47M Tokens to Stabilize a Volatile Future

World Liberty Financial (WLF) has initiated a token burn to stabilize its volatile WLFI cryptocurrency, which has seen significant price fluctuations since its public market debut. On Wednesday, the platform burned 47 million WLFI tokens, permanently removing them from circulation to reduce supply and potentially increase demand. The tokens were sent to a burn wallet on Etherscan on September 2, reducing the total supply to just over 99.95 billion from an original 100 billion. This action represents 0.19% of the circulating supply, according to CoinMarketCap data. The burn is part of a broader proposal to implement a buyback and burn program using protocol-owned liquidity fees, aiming to increase token scarcity and support its value [1].

The WLFI token began trading publicly on Monday, peaking at $0.331 before dropping to a low of $0.21 within hours. As of Tuesday, it was trading at just over $0.23, a 31% decline from its opening high. The token’s price volatility reflects early speculation and the influence of short sellers. According to the proposal, the burn is intended to benefit long-term holders by increasing their relative ownership and reducing the number of tokens held by less committed participants. Community feedback has generally been positive, with 84% of nearly 25,000 respondents on CoinMarketCap expressing a bullish outlook despite reports of top holders reducing their positions [1].

The Trump family holds a significant stake in WLFI, with Donald Trump and his sons collectively owning nearly 25% of the token supply. This stake, currently valued at approximately $5.98 billion, is one of the family's most valuable assets, according to CoinMarketCap data. The tokens were initially sold in private rounds at $0.015 and $0.05, with the latter round attracting nearly 2,000 accredited investors. World Liberty Financial has raised roughly $500 million from token sales, with 75% of proceeds going to DT Marks DEFI LLC, a company in which Trump owns a 70% stake. The company has not unlocked its tokens, maintaining a longer vesting schedule than early investors [2].

The WLFI token is part of a decentralized finance (DeFi) platform that also issues a stablecoin, USD1. The token grants holders the right to propose and vote on protocol rule changes but does not confer ownership in the company or represent any underlying assets. The recent token unlock and trading activity have drawn attention to the risks and rewards associated with celebrity-backed crypto projects. Analyst Kevin Rusher, founder of RAAC, noted that institutional adoption—not short-term hype—will define the long-term viability of crypto assets. Meanwhile, the token’s launch also had a noticeable impact on Ethereum’s gas fees, with some transactions spiking to $50 in fees, highlighting the infrastructure challenges the sector still faces [1].

Despite the Trump family's prominent role, World Liberty Financial has maintained that it operates independently from politics, positioning itself as a private DeFi venture. However, the project has faced criticism for the disparity between early investor gains and retail investor losses. For instance, in a separate Trump-backed meme coin project, 58 investors reportedly earned over $10 million each, while the majority of smaller holders lost money. The WLFI token’s current market performance suggests that its long-term success will depend on broader adoption and confidence in its governance structure [3].

Source: [1] World Liberty Burns 47M Tokens as WLFI Price Slides (https://cointelegraph.com/news/wlfi-token-burn-price-drop-world-liberty-financial) [2] Trump Family's WLFI Token Debuts 5 To 15 Times Above... (https://www.forbes.com/sites/zacheverson/2025/09/02/trump-crypto-token-wlfi-world-liberty-financial/) [3] Trump-backed WLFI token whipsaws as speculators drive... (https://nypost.com/2025/09/02/business/trump-backed-wlfi-token-whipsaws-as-speculators-drive-billions-in-trades/)