WLFI's Burn Plan: A Race Against Expanding Supply and Insider Sales

World Liberty Financial’s (WLFI) token price has plummeted by approximately 37% since its launch, trading at $0.1845 as of the latest data, a stark decline from its peak of $0.3200. The token’s market capitalization has fallen to over $4.5 billion, down from a high of $7.9 billion earlier this week. Analysts attribute the sharp sell-off to a combination of broader crypto market weakness, intense selling pressure from insiders and early investors, and structural concerns about the token’s supply dynamics. The collapse mirrors the underperformance of other Trump-linked assets, such as Trump Media stock, which has dropped over 50% this year, and the Official Trump meme coin, which has lost 90% of its value from its peak .

To counter the decline, WLFI’s governance team has proposed a 100% token burn of protocol fees, aiming to reduce circulating supply and stabilize the token’s value. The plan, which has garnered community support, involves redirecting all fees from Ethereum, BNB Chain, and Solana liquidity pools into buybacks and subsequent burns. Proponents argue that this strategy could create artificial scarcity, potentially reversing the downtrend. However, critics highlight risks, including the continued expansion of WLFI’s circulating supply—now at 24.6 billion tokens, with 75 billion expected to enter the market eventually—and the concentration of USD1 stablecoin profits, which primarily benefit the Trump family rather than tokenholders .

Insider activity and governance concerns have further fueled skepticism. On-chain data revealed short positions exceeding $3 million in USDC, with traders betting against WLFI’s recovery. Social media users have accused project co-founder Eric Trump of promoting a “pump and dump” scheme, citing patterns of pre-liquidation sales and the token’s rapid depreciation. Influencer Andrew Tate, who initially lost $67,500 on a long position, doubled down on WLFI after his position was liquidated, signaling cautious optimism. Meanwhile, Justin Sun, a high-profile backer holding $693 million in WLFI, has pledged not to sell his unlocked tokens, calling the project “one of the biggest in crypto” .

Technical indicators reinforce bearish sentiment. WLFI’s price has broken key support levels, with the RSI below 50 and MACD negative, suggesting further downward momentum. Analysts project a potential drop to $0.16, a 38% decline from current levels, before any meaningful recovery could materialize. Some forecasts, however, remain cautiously optimistic. If the burn proposal is fully executed, WLFI could test $0.40 by year-end, with long-term targets of $0.90 by 2030, assuming sustained adoption and political narrative strength .

The token’s presale structure and governance model have also drawn scrutiny. Only 3% of WLFI’s 100 billion supply was unlocked at launch, with the remainder held in a DAO-controlled “Lockbox.” While this design aims to manage supply inflation, users reported technical issues accessing the platform, particularly with Coinbase wallets. Additionally, 75% of presale proceeds flowed to the Trump family, raising questions about token distribution and governance transparency .

[1] WLFI Price Prediction: Top Reasons World Liberty is Going Down (https://www.banklesstimes.com/articles/2025/09/05/wlfi-price-prediction-top-reasons-world-liberty-is-going-down/)

[2] World Liberty Financial (WLFI) Price Prediction 2025–2030 (https://coinedition.com/world-liberty-financial-wlfi-price-prediction/)

[3] WLFI Proposes Token Burn After Post-Launch Price Drop: What’s Next? (https://www.thecoinrepublic.com/2025/09/02/wlfi-proposes-token-burn-after-post-launch-price-drop-whats-next/)

[4] WLFI Token Drops 24% Amid Burn Plan - Osiris News (https://osiris.news/2025/09/wlfi-token-drops-24-amid-burn-plan/)

[5] WLFI Freefall — Why Traders Are Panicking After Launch Day (https://www.ccn.com/analysis/crypto/wlfi-token-launch-day-performance/)