WLFI Token Faces Turmoil Amid Trump-Linked Buyback-and-Burn Plan

WLFI, a cryptocurrency linked to the Trump family, has faced turbulence since its launch. After dropping 25% in its first few days, the team proposed a buyback-and-burn strategy to stabilize the cryptocurrency. The plan aims to reduce supply, reward long-term holders, and raise prices. However, some experts question the sustainability of this approach, and regulators are divided on how to handle politically linked coins. Market strategists are split on WLFI's future performance, with some predicting a rise to $0.35-$0.40 if adoption continues.

World Liberty Financial (WLFI), a decentralized finance (DeFi) project linked to the Trump family, has faced significant market volatility since its launch. On September 1, 2025, WLFI debuted at $0.20 per token, quickly rising to a brief high of $0.40 before experiencing a sharp correction, dropping to approximately $0.2431 by the end of the day [1].

In response to the dramatic price swing, the WLFI team has proposed a 100% token burn strategy, aiming to stabilize the cryptocurrency and reward long-term holders. The initiative involves using all protocol-owned liquidity (POL) fees to purchase and permanently burn WLFI tokens, thereby reducing the circulating supply [1].

The proposal, which excludes fees from community or third-party liquidity providers, is designed to align token scarcity with platform usage and increase investor confidence. This strategy is particularly timely, given the recent regulatory scrutiny over politically linked cryptocurrencies [2].

The buyback-and-burn program, if approved by the community, will form the basis of a continuous initiative with the potential to add more sources of protocol revenue as the network evolves. The proposal is now available for community voting, with options to vote in favor, against, or abstain [1].

While the token burn strategy could potentially stabilize WLFI's price, some experts question its sustainability. Market strategists are split on WLFI's future performance, with some predicting a rise to $0.35-$0.40 if adoption continues [3]. However, the token's highly concentrated ownership and periodic unlock events could present challenges to long-term price stability [3].

The U.S. government, under Trump's leadership, has introduced the Genius Act, a regulatory framework for stablecoins requiring full reserve backing and transparency. While the law aims to enhance consumer protection, it has raised concerns about conflicts of interest and disproportionate benefits for politically connected projects [2].

World Liberty Financial's treasury has expanded significantly since its launch, with current holdings exceeding $97 million across major crypto assets. The project has also announced plans for a $1.5 billion crypto-treasury initiative, signaling its ambitions to scale operations [2].

In conclusion, WLFI's token burn strategy represents a significant effort to stabilize the cryptocurrency and reward long-term holders. However, the future performance of WLFI remains uncertain, with market strategists and regulators divided on its potential impact and sustainability.

References:

[1] https://www.cryptotimes.io/2025/09/02/trump-linked-wlfi-proposes-100-token-burn-strategy/
[2] https://www.ainvest.com/news/trump-linked-wlfi-token-enters-binance-regulatory-scrutiny-2509/
[3] https://www.bitget.com/academy/wlfi-price-prediction-trump-family-crypto