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WLFI's Token Burn: Combating a 58% Decline by Reducing Supply by 0.19%

WLFI's Token Burn: Combating a 58% Decline by Reducing Supply by 0.19%

Bitget-RWA2025/09/27 01:46
By:Coin World

- Trump-backed DeFi project WLFI initiates token buybacks/burns to stabilize price after 58% September decline, funded by 100% of liquidity pool fees. - First burn destroyed 47 million tokens (0.19% supply), with analysts estimating potential 2% annual supply reduction via daily 4 million token burns. - While 99.8% of holders approved the deflationary strategy, critics argue insufficient supply cuts and question long-term viability amid ongoing price declines. - Project faces challenges balancing token sca

WLFI's Token Burn: Combating a 58% Decline by Reducing Supply by 0.19% image 0

World Liberty Financial (WLFI), a decentralized finance initiative supported by the Trump family, has launched a token repurchase and burn scheme to help stabilize its value after a sharp drop in September. This plan, which received approval from 99.8% of

holders through a governance vote, allocates all fees collected from the project’s liquidity pools on , BNB Chain, and to buy back tokens and permanently remove them from circulation. The goal is to decrease the available supply of WLFI, which has fallen by more than 58% from its September 1 high of $0.46 to $0.19 by late September. The first major burn under this program saw 47 million WLFI tokens, or 0.19% of the circulating supply, sent to a burn address.

This buyback and burn approach is funded solely by protocol-owned liquidity fees, not involving community or external pools. This ensures that the process does not interfere with outside liquidity while establishing a deflationary mechanism linked to platform usage. As trading activity rises, so do the fees, which allows for larger buybacks and further supply reduction. Analysts predict that as many as 4 million WLFI tokens could be burned daily, potentially removing 2% of the total supply each year WLFI Launches 100% Buyback & Burn Strategy to Boost Token Value [ 2 ]. The team has committed to full transparency, making all transactions visible on-chain and providing real-time updates to foster trust among holders World LibertyFi Community Approves 100% Treasury Liquidity Fee … [ 6 ].

Reactions from the community have been divided. Although 99.8% of voters backed the initiative, some critics argue that burning tokens with fee revenue alone may not be enough to reverse WLFI’s price decline. One participant called for a much larger reduction in supply, suggesting that burning 10 billion tokens—over 40% of the current supply—would be necessary for meaningful price support. Others recommended including presale tokens in the program, with limits based on fee income to avoid excessive selling pressure World LibertyFi Community Approves 100% Treasury Liquidity Fee … [ 6 ]. Despite these debates, the strategy is in line with broader trends in the crypto sector, where projects such as Hyperliquid and

have adopted similar scarcity-boosting tactics.

WLFI’s actions reflect a wider movement toward deflationary token models, which are gaining popularity amid market uncertainty. The project’s governance team highlighted that the program is designed to reward long-term holders by increasing the relative value of their stakes. However, the plan’s success depends on the continued generation of liquidity fees. If trading slows, the buyback program may struggle to maintain funding, limiting its effect on price recovery WLFI Holders Approve 100% Buyback Plan to Cut Supply and … [ 3 ].

The Trump-affiliated project has also come under scrutiny due to its volatile price movements after launch. Following a 40% drop in its first three days of trading, WLFI’s value has continued to slide, raising concerns about its future prospects. The team has also faced controversy, including allegations from early investor Justin Sun that his WLFI tokens were frozen WLFI Launches 100% Fee-Funded Buyback and Burn Program [ 1 ]. Meanwhile, WLFI is preparing to release a debit card and retail app, which will support Apple Pay and peer-to-peer payments, aiming to broaden the token’s use beyond DeFi trading.

Although the buyback and burn initiative marks a major effort to stabilize WLFI, its ultimate effectiveness is still in question. The project must find a balance between reducing token supply and securing resources for ongoing development and ecosystem expansion. If managed well, this approach could become a blueprint for other DeFi projects facing bearish conditions. However, without a significant boost in demand or liquidity, the program may not be enough to reverse WLFI’s downward momentum WLFI Holders Approve 100% Buyback Plan to Cut Supply and … [ 3 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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