WLFI Falls as Trump-Associated World Liberty Team Unveils Buyback-and-Burn Plan

Trump-Linked WLFI Proposes Buyback-and-Burn Program Amid Early Trading Losses

World Liberty Financial (WLFI), the DeFi project affiliated with the Trump family, has unveiled a buyback-and-burn plan aimed at restoring investor confidence following a turbulent market debut. The strategy would use all protocol-owned liquidity fees to repurchase WLFI tokens and send them to a burn address, permanently reducing circulating supply.

The announcement comes as WLFI faces significant headwinds after listing on major exchanges including Binance, OKX, Upbit, Coinbase, and Bithumb. The token is currently trading around $0.23, down 24% in a single day, with a market capitalization of approximately $6.39 billion, according to CoinGecko. At launch, WLFI briefly saw valuations exceeding $40 billion on futures markets before a swift sell-off drove prices lower.

Under the proposed program, fees generated from WLFI’s liquidity pools on Ethereum, Binance Smart Chain, and Solana would be used solely for token burns. The team emphasized that this mechanism targets protocol-owned liquidity only, leaving third-party and community-provided liquidity unaffected. Alternative options, such as splitting fees between treasury and burns, were rejected to maximize the deflationary impact.

Supporters of the proposal argue it shifts the narrative from oversupply to engineered scarcity: higher trading volumes generate more fees, which in turn increase the amount of WLFI permanently removed from circulation. Meanwhile, a separate community-led proposal suggests locking 80% of WLFI tokens in staking pools, with rewards drawn from the remaining 20%. Critics argue that approach redistributes tokens rather than creating real yield.

Despite criticism and ongoing debate, WLFI maintains high-profile backing. Tron founder Justin Sun has publicly endorsed the project on X, calling it “one of the biggest and most important projects in crypto,” while pledging not to sell his unlocked tokens. Arkham data shows WLFI’s treasury holds $13.78 million in TRX, and Sun personally holds roughly $693 million in WLFI, much of it subject to vesting schedules reinforcing his long-term commitment to the protocol.

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