What is World Liberty Financial’s Token Burn Proposal?
World Liberty Financial (WLFI), the Trump-linked crypto project, has announced a bold governance move just days after its rocky launch. The team aims to utilize 100% of the protocol fees from WLFI-owned liquidity pools to purchase tokens on the open market and permanently burn them.
The goal is simple: reduce circulating supply, increase scarcity, and reward long-term holders. However, critics warn that allocating every fee to burning leaves no room for reserves or emergency funds.
Long-term holders, the Trump family, and speculators could all benefit if WLFI’s burn strategy drives scarcity and price recovery. But without balancing sustainability, the aggressive plan risks weakening the project’s long-term stability.
Why is WLFI focusing on scarcity?
The decision comes after WLFI’s shaky start. The project unlocked 24.6 billion tokens, raising circulation to 27.3 billion out of 100 billion. This move boosted the Trump family’s holdings to nearly $5 billion, despite earlier claims of locked founder tokens. The sudden supply jump shook investor confidence.
By linking fees directly to buybacks and burns, supporters argue WLFI can rebuild trust and align growth with scarcity.
Analyst Quinten called the strategy a “direct connection between activity and token valuemore usage means more tokens burned.”
How Will Wlfi Execute the Buyback and Burn Plan?
WLFI’s liquidity pools on Ethereum, BNB Chain, and Solana will generate fees every time users interact. Instead of splitting those fees across different uses, all earnings will be converted into WLFI tokens and sent to a burn address, permanently removing them from circulation.
WLFI ambassadors revealed that fee-splitting options were considered but rejected. Early community feedback leans toward supporting the full-burn model as a way to fight recent selling pressure.
“The proposal directs every fee earned from WLFI’s protocol-owned liquidity to buy tokens on the open market and send them to a burn address, removing them from circulation for good,” said WLFI ambassador Tespmoore.
When did the price crash, and what’s the market reaction?
WLFI launched with strong hype, trading as high as $0.331, but it quickly fell by 36% to $0.210. At the time of writing, WLFI trades around $0.229, down nearly 30% on the day. With a $6.6 billion market cap, it still sits in the top 40 cryptos, but confidence is fragile.
Big names like Justin Sun continue to back the project, yet many investors remain cautious, waiting to see whether the burn plan can steady WLFI’s volatile debut.
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FAQs
WLFI plans to use 100% of protocol fees from its liquidity pools to buy back and permanently burn tokens, reducing supply to increase scarcity and value.
The move aims to rebuild trust after its volatile launch, counter sudden supply increases, and align token value with platform usage and activity.
WLFI peaked at $0.331 but fell 36% to ~$0.210. It now trades near $0.229, down 30% daily, with a $6.6B market cap amid fragile confidence.
WLFI is available on major exchanges like Binance, OKX, and Bybit. Create an account, deposit funds (e.g., USDT), and trade for WLFI via spot markets like WLFI/USDT.
