Trump’s WLFI Tanks 30%, Team Bets on Token Burn for Recovery

Jimmy Aki
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WLFI, the native cryptocurrency of the Trump family’s World Liberty Financial project, has seen a sharp 30% drop from its recent high of $0.32 as selling pressure increased. In response, the project’s team has proposed a 100% fee burn alongside a token buyback, both aimed at reducing the number of WLFI tokens in circulation.

100% of Liquidity Fees Will Be Permanently Burned

On September 2, the World Liberty Financial team proposed allocating all fees generated from its proprietary liquidity pools on Ethereum, BNB Chain, and Solana to buy back WLFI tokens. These tokens would then be permanently removed from circulation via burning.

Burning is a widely used deflationary mechanism in cryptocurrency wherein tokens are sent to an irrecoverable address, effectively removing them from circulation forever.

This process gradually reduces the total token supply. In theory, a shrinking supply can increase the value of each remaining token, assuming demand remains constant or grows.

The plan, however, does not include fees earned by community or third-party liquidity providers. Only the protocol’s own liquidity positions are covered. This means the scope of the program is limited, but it is still seen as a major step toward reducing circulating supply.

According to the proposal, this initiative is designed to strengthen the position of long-term holders. When tokens are burned, the relative ownership of committed holders automatically increases.

For example, if you already own WLFI and the total supply drops, your share of the overall network becomes larger without you having to buy more.

The announcement also suggested that future phases could incorporate revenue from other segments of the World Liberty Financial ecosystem to fund additional buyback-and-burn efforts.

Reactions so far have been mixed. Many community members praised the proposal as a smart way to fight early selling pressure and add long-term value.

However, several questions remain unanswered. Some observers pointed out that the actual volume of fee revenue has not been disclosed, making it hard to assess the potential impact of the burns. Others expressed concern that dedicating 100% of protocol fees to burns could leave the project without a financial safety net in case of emergencies.

Is WLFI Token Set to Rebound After Its First-Day Fall?

The launch of the WLFI token was met with considerable enthusiasm. Even before public trading began, WLFI derivatives attracted significant attention, with open interest nearing $950 million. At one point, derivatives trading volume exploded over 420% in a 24-hour period, exceeding $5 billion.

Such figures signalled strong market interest, but the price quickly turned volatile. The token touched highs of $0.40 last week but dropped sharply on its first official trading day.

It fell 36% from $0.331 to $0.210 before recovering slightly to $0.229 at the time of writing. That still left it nearly 30% down on the day.

For presale investors, though, the drop was less painful. They purchased the WLFI token at just $0.015 each, meaning they remain in strong profit despite the correction. For new buyers, however, the selloff raised doubts about short-term stability.

The newly proposed burn mechanism aims to address these concerns by artificially inducing scarcity, which could help stabilize and possibly increase the token’s price over the medium to long term. That said, market participants remain cautious as burning tokens alone cannot guarantee price appreciation—sustained demand is equally critical.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.