WLFI's Burn Program: Can It Reverse 50% Price Slide?

World Liberty Financial (WLFI), a digital asset venture backed by former U.S. President Donald Trump, has implemented a token buyback and burn program following a near-unanimous governance vote. The initiative, approved with 99.8% support, redirects 100% of treasury liquidity fees from Ethereum, BNB Chain, and Solana liquidity pools to repurchase and permanently remove WLFI tokens from circulationTrump-Backed World Liberty Financial to Launch Buyback and …^[1]. The program aims to reduce token supply, stabilize price volatility, and align incentives with long-term holders. WLFI’s token price has declined by over 50% from its September 1 launch peak of $0.46, currently trading at $0.2280.

The buyback-and-burn mechanism excludes fees from community or third-party liquidity providers, focusing solely on protocol-owned liquidity (POL) to maintain transparency. Tokens purchased will be sent to a burn address, with transactions publicly recorded on-chain for accountabilityWLFI Holders Approve Buyback And Burn After 41% Price Drop^[2]. The project emphasizes that this strategy prioritizes “committed long-term holders” by removing tokens from short-term traders, thereby increasing the relative value of existing holdingsTrump-Linked WLFI Passes 100% Buyback & Burn Proposal^[3].

Implementation began this week across the three major blockchains, with WLFI committing to publish detailed reports after each burn. Analysts have noted the program’s potential to create upward price pressure, though uncertainty remains about the scale of fee generation. Prominent crypto analyst Captain Faibik projected a 25% price rally following the proposal’s approval, while others estimate a 30–50% upside if the initiative gains tractionTrump-Linked WLFI Passes 100% Buyback & Burn Proposal^[3]. Technical analysis suggests WLFI is forming a falling wedge pattern, with resistance levels near $0.26 potentially triggering a short-term reboundWLFI Burn Proposal Targets 50% Price Surge With Buybacks^[4].

WLFI’s governance vote followed a turbulent launch period, during which the token lost 40% of its value within three days despite an initial one-time burn of 47 million tokensTrump-Backed World Liberty Financial to Launch Buyback and …^[1]. The project’s governance proposal explicitly stated that the program aims to “remove tokens held by participants not committed to WLFI’s long-term growth and direction”. However, critics argue that buyback mechanisms may divert funds from product development and user acquisition, with some observers advocating for greater focus on “productive tokens” over deflationary tacticsWLFI Burn Proposal Targets 50% Price Surge With Buybacks^[4].

Long-term success hinges on consistent execution and transparency in reporting. WLFI’s leadership has emphasized plans to expand the program to additional revenue streams as the ecosystem matures. Market confidence will also depend on governance clarity, including who controls the treasury and how burn transactions are authorized. While the initiative addresses immediate supply concerns, its ability to reverse WLFI’s price trajectory remains untested.