WLFI's Token Burn Strategy Faces Skepticism Amid Trump Family's Massive Stake

World Liberty Financial (WLFI), the decentralized finance project associated with former U.S. President Donald Trump and his family, has executed a $1.43 million token burn following a $1.06 million buyback program funded by DeFi fees. The initiative, approved by 99% of WLFI holders in a governance vote, aims to reduce the token’s circulating supply and stabilize its price. As of September 2025, the project burned 7.89 million WLFI tokens across BNB Smart Chain and Ethereum, while 3.06 million tokens ($638,000) remain unburned on Solana. The token’s price has dropped 38% from its all-time high but rose 6% in a single day, trading at $0.2049 as of the latest dataTrump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback^[1].

The buyback and burn strategy leverages fees from WLFI-managed liquidity pools, with all proceeds directed toward purchasing and permanently removing tokens from circulation. This deflationary approach, which excludes community and third-party liquidity pools, is designed to reduce selling pressure and align token value with protocol activity. On-chain data from Lookonchain indicates that the project collected $1.06 million in fees and liquidity earnings, which funded the buyback of 6.04 million WLFI tokensTrump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback^[1]. Analysts suggest the program could burn up to 4 million tokens daily, equivalent to 2% of the annual supply, though exact figures remain unconfirmedTrump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback^[1].

WLFI’s governance vote, passed with near-unanimous support, reflects strong community backing for the initiative. The project’s leadership emphasized transparency, pledging to publicly disclose all buyback and burn transactions. However, questions persist about the long-term effectiveness of the program. While WLFI has seen a 33% price decline over the past month, the token’s recent volatility has drawn mixed reactions from traders. Some argue that the burn strategy could drive a 25% price rally, particularly with WLFI’s recent listing on Robinhood, which briefly pushed its market cap toward $5 billionWorld Liberty Approves Full Token Buyback & Burn^[2]. Others remain skeptical, noting that similar deflationary tactics in other DeFi projects have often failed to sustain price gains without broader adoptionWLFI Launches 100% Fee-Funded Buyback and Burn Program^[3].

The Trump family’s involvement in WLFI has further amplified scrutiny. The Trump-linked entity DT Marks DEFI LLC holds 22.5 billion WLFI tokens, valued at approximately $5 billion following the unlocking of 24.6 billion tokens in early September. This large stake has raised concerns about potential conflicts of interest, with critics arguing that early investors benefited disproportionately from the token’s initial price surge. Despite these concerns, WLFI’s team maintains that the buyback and burn program prioritizes long-term holders by reducing supply and enhancing scarcityTrump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback^[1].

Looking ahead, WLFI’s roadmap includes expanding its ecosystem through partnerships and product integrations. The project recently announced plans for a debit card linked to its USD1 stablecoin and a retail payments app, aiming to bridge traditional finance and crypto. Additionally, WLFI has signed a memorandum of understanding with South Korean exchange Bithumb to expand its market presenceWorld Liberty Approves Full Token Buyback & Burn^[2]. However, the success of these initiatives will depend on sustained user growth and on-chain activity, as liquidity fee revenues directly fund the buyback and burn program.

The broader DeFi landscape remains cautiously optimistic about WLFI’s strategy. While token burns have become a common tactic to counter price declines, their effectiveness hinges on trading volume and market sentiment. WLFI’s price action suggests a test of its support zone around $0.19, with technical indicators indicating potential for a rebound to $0.205 or a further decline toward $0.18. Analysts will closely monitor the implementation of the buyback program and its impact on WLFI’s circulating supply, which currently stands at 99.95 billion tokensTrump Family’s WLFI Burns 47M Tokens After 31% Price Drop in September 2025^[4].