World Liberty Financial, the Trump family–backed crypto project, has begun burning its native WLFI tokens in a bid to prop up prices after a steep decline since launch.
On-chain data from Lookonchain revealed that 47 million WLFI tokens were sent to a burn wallet on Sept. 2, permanently cutting them from supply. The move came after the token slid nearly 32% from its debut peak of $0.331 to just over $0.23.
WLFI Presale Price vs Current Market Performance
Token burns are a common tactic in crypto, designed to create scarcity by reducing circulating supply. However, with WLFI’s total supply initially set at 100 billion tokens, the burn represented just 0.19% of the circulating supply, raising questions about whether it will have a meaningful impact.
Meanwhile, World Liberty has also floated a proposal to expand the burn mechanism by using protocol-owned liquidity fees for regular token buybacks and burns. The team argues this strategy will reward long-term holders while discouraging speculative traders who contributed to the token’s sharp sell-off in its first days of trading.
So far, community sentiment seems positive. Out of 133 comments on the proposal, the majority expressed support, though an official governance vote has yet to take place.
WLFI Price Drop Raises Investor Concerns
However, despite the burn, WLFI price remains under pressure, reflecting wider skepticism about so-called “celebrity tokens.” Kevin Rusher, founder of real-world asset lending platform RAAC, said the frenzy highlights crypto’s immaturity.
“True longevity will come from institutional adoption, not short-term hype,” he warned, adding that speculative tokens risk eroding trust in the industry.
Others pointed to the token’s unexpected side effects on the Ethereum network. Mangirdas Ptašinskas of Galxe noted that WLFI’s launch pushed gas fees as high as $50 per $200 transfer, underscoring ongoing scalability issues.
“If a single trading frenzy can do this, crypto isn’t yet ready for mainstream adoption,” he said.
The World Liberty token burn is part of a broader effort to restore confidence after a rocky debut. But with WLFI still down over 30% from its launch high, the question remains whether tokenomics tweaks alone can sustain value.
Analysts suggest that beyond supply cuts, long-term success will depend on real adoption and use cases, not just headline-driven hype.
WLFI is the native token of World Liberty Financial, majority-owned by the Trump family.
WLFI launched near $0.33–$0.40 but is now trading around $0.23.
To reduce supply and create scarcity, though it’s only 0.19% of circulation.
WLFI is listed on major exchanges like Binance, Kraken, and OKX.
Estimated at $5B+ on paper, though most tokens are locked.
