Trump-linked World Liberty Financial Proposes Token Burn as WLFI Sinks 30%
World Liberty Financial (WLFI), a decentralized finance project connected to the Trump family, has introduced a governance proposal to launch a token buyback-and-burn system. The plan would channel all fees from protocol-owned liquidity pools on Ethereum, BNB Chain, and Solana into purchasing WLFI tokens from the market, which would then be permanently removed from circulation.
If approved, the move would shrink circulating supply, increase the share of long-term holders, and tie token scarcity directly to platform usage. According to the proposal, the initiative aims to eliminate tokens held by short-term speculators, boosting the weight of committed investors. It could also serve as the foundation for a wider buyback program drawing on future revenue sources.
Most community responses have been favorable. Supporters emphasized that the proposal prioritizes burning over other treasury strategies. WLFI ambassador “Tespmoore” noted that while alternatives like splitting fees between treasury reserves and burns were discussed, the team opted to go fully into token destruction.
However, uncertainties remain. The exact fee amounts—and thus the scale of potential burns—are unclear. In addition, the plan doesn’t specify how the treasury would handle emergencies if all fees are locked into burning.
This development follows a major token unlock on Monday, which released 24.6 billion WLFI into circulation and boosted the Trump family’s holdings to around $5 billion. At launch, the founders’ allocations, including those of Donald Trump and his sons Donald Jr., Eric, and Barron, were supposed to remain locked. WLFI currently has 27.3 billion tokens in circulation from a 100 billion total supply, giving it a market cap of about $6.6 billion.
Despite the proposal, WLFI’s price has sharply declined. After peaking at $0.331, the token plunged nearly 36% to $0.210, later recovering slightly to $0.229—still down around 30% in a single day.
