World Liberty Financial (WLFI), the Trump-family–linked DeFi token, has proposed a bold buyback-and-burn plan intended to restore confidence after a turbulent market debut.
Under a governance proposal, WLFI would direct 100% of fees generated by the protocol’s own liquidity positions on Ethereum, Binance Smart Chain and Solana to purchase WLFI on open markets and send those tokens to a burn address—permanently reducing circulating supply. The team argues the move aligns long-term holders with protocol growth by removing tokens held by sellers not committed to WLFI’s future.
The proposal comes as WLFI trades near $0.23, down about 24% on the day, with a reported market capitalization near $6.39 billion according to CoinGecko. The token briefly saw much larger futures valuations at launch before selling pressure pushed the price lower.
Key details: the plan affects only fees from protocol-owned liquidity; third-party or community liquidity providers would not be touched. Alternatives—such as splitting fees between treasury and burns—were considered but rejected in favor of a full allocation to burns to maximize immediate supply impact.
Separately, a community proposal would auto-stake 80% of locked WLFI and fund rewards from the remaining reserve; supporters say it converts idle supply into productive assets, while critics call it redistribution rather than genuine yield.
Notable backers remain: Tron founder Justin Sun is publicly endorsing WLFI and has pledged not to sell unlocked tokens. Arkham data shows WLFI’s treasury holds roughly $13.78 million in TRX, while Sun is reported to hold about $693 million of WLFI tokens, largely in vesting.
What it means: a protocol-funded buyback-and-burn can engineer scarcity, but it does not guarantee price appreciation. Market sentiment, liquidity, and governance turnout will determine the real effect—investors should weigh tokenomics changes alongside execution risk and market conditions.
Source: CoinDesk. Read the original coverage for full details.
