WLFI plunges 30% after launch, Trump project proposes token burn
World Liberty Financial’s WLFI token, backed by the Trump family, has seen a sharp sell-off since its market debut, losing nearly 30% of its value within hours. In response, the project has introduced a governance proposal to implement an aggressive token buyback and burn strategy aimed at restoring confidence and stabilizing prices.
WLFI launched on major exchanges on September 1, quickly reaching a peak of $0.331. However, heavy selling pressure drove the price down by 36% to $0.210 before recovering slightly to $0.229. The decline reflects broader uncertainty around the project’s massive token unlocks and questions about its long-term sustainability. WLFI’s market capitalization currently stands at $6.6 billion, with 27.3 billion tokens circulating out of a maximum supply of 100 billion.
To address the downturn, World Liberty Financial governance has put forward a plan to use 100% of protocol-owned liquidity fees across Ethereum, BNB Chain, and Solana to repurchase WLFI tokens and permanently remove them from circulation. By reducing supply, the project aims to boost the relative ownership share of long-term holders and link token scarcity directly to platform usage.
“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth, effectively increasing relative weight for committed holders,” the proposal states.
The community reaction so far has been largely supportive, with most respondents in favor of prioritizing token burning over treasury accumulation. Still, uncertainties remain, including the actual volume of fees available and the absence of a contingency plan should the treasury require funds in an emergency.
The price slump coincided with a major unlock of 24.6 billion tokens on Monday, which increased the Trump family’s holdings to an estimated $5 billion. Initially, the project had indicated that founder allocations - including those for Donald Trump, Donald Trump Jr., Eric Trump, and Barron Trump - would remain locked, but the new release added significant supply pressure to the market.
To address the downturn, World Liberty Financial governance has put forward a plan to use 100% of protocol-owned liquidity fees across Ethereum, BNB Chain, and Solana to repurchase WLFI tokens and permanently remove them from circulation. By reducing supply, the project aims to boost the relative ownership share of long-term holders and link token scarcity directly to platform usage.
“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth, effectively increasing relative weight for committed holders,” the proposal states.
The community reaction so far has been largely supportive, with most respondents in favor of prioritizing token burning over treasury accumulation. Still, uncertainties remain, including the actual volume of fees available and the absence of a contingency plan should the treasury require funds in an emergency.
The price slump coincided with a major unlock of 24.6 billion tokens on Monday, which increased the Trump family’s holdings to an estimated $5 billion. Initially, the project had indicated that founder allocations - including those for Donald Trump, Donald Trump Jr., Eric Trump, and Barron Trump - would remain locked, but the new release added significant supply pressure to the market.
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