WLFI's Token Burn: Fighting 58% Drop with 0.19% Supply Cut

World Liberty Financial (WLFI), a decentralized finance (DeFi) project backed by the Trump family, has executed a token buyback and burn program to stabilize its price following a significant decline in September. The initiative, approved by 99.8% of WLFI holders in a governance vote, utilizes 100% of fees generated from the project’s liquidity pools on Ethereum, BNB Chain, and Solana to repurchase tokens and permanently remove them from circulation. The program aims to reduce the circulating supply of WLFI, which has dropped over 58% from its September 1 peak of $0.46 to $0.19 as of late September . The first major token burn under the program involved 47 million WLFI tokens, equivalent to 0.19% of the circulating supply, sent to a burn address .

The buyback and burn strategy is funded entirely by protocol-controlled liquidity fees, excluding community or third-party pools. This approach ensures that the initiative does not disrupt external liquidity structures while creating a deflationary mechanism tied to platform activity. As trading volume increases, so do fees, enabling larger buybacks and further supply reduction. Analysts estimate that up to 4 million WLFI tokens could be burned daily, potentially eliminating 2% of the total supply annually WLFI Launches 100% Buyback & Burn Strategy to Boost Token Value^[2]. The team has pledged full transparency, publishing all transactions on-chain and sharing real-time updates to build trust with holders World LibertyFi Community Approves 100% Treasury Liquidity Fee …^[6].

Community feedback has been mixed. While 99.8% of voters supported the proposal, some critics argue that fee-based burns are insufficient to reverse WLFI’s downward trend. One user called for larger supply cuts, suggesting that burning 10 billion tokens—over 40% of the current supply—would be necessary to achieve meaningful price stability . Others proposed expanding the program to include presale tokens, with caps tied to fee revenues to prevent excessive sell pressure World LibertyFi Community Approves 100% Treasury Liquidity Fee …^[6]. Despite these concerns, the initiative aligns with broader trends in crypto, where projects like Hyperliquid and Raydium use similar strategies to boost token scarcity .

WLFI’s move reflects a broader shift in tokenomics, with deflationary models gaining traction amid market volatility. The project’s governance team emphasized that the program aligns long-term holders with the project’s success by increasing the relative value of committed stakeholders. However, the strategy’s effectiveness hinges on sustained liquidity fee generation. If trading activity declines, the buyback program could face funding challenges, limiting its impact on price recovery WLFI Holders Approve 100% Buyback Plan to Cut Supply and …^[3].

The Trump-backed project faces additional scrutiny due to its rapid post-launch volatility. After a 40% drop in the first three days of trading, WLFI’s token has continued to lose value, raising questions about its long-term viability. The team has also faced controversy, including claims by Justin Sun, an early backer, that his WLFI tokens were frozen WLFI Launches 100% Fee-Funded Buyback and Burn Program^[1]. Meanwhile, WLFI’s upcoming debit card and retail app, which integrates with Apple Pay and peer-to-peer payments, aim to expand the token’s utility beyond DeFi trading .

While the buyback and burn program represents a significant step toward stabilizing WLFI, its success remains uncertain. The project must balance token scarcity with the need to fund future development and ecosystem growth. If executed effectively, the initiative could serve as a model for other DeFi projects navigating bearish markets. However, without a substantial increase in demand or liquidity, the program may struggle to reverse WLFI’s downward trajectory WLFI Holders Approve 100% Buyback Plan to Cut Supply and …^[3].