Trump-Backed WLFI Proposes Burn Plan as Price Drops 30%

- WLFI proposes using all fees to buy back tokens after market turmoil. - Price dips 30% as surplus tokens flood supply during post-launch. World Liberty Financial (WLFI), a decentralized finance (DeFi) project associated with the Trump family, has proposed a new plan to dedicate all protocol-owned liquidity fees to buy back and burn WLFI tokens. This initiative aims to combat the token’s steep price decline, which followed a post-launch sell-off of 24.6 billion newly released tokens. On September 2, 2025, Cointelegraph reported that WLFI will use liquidity fees from its trading pools on Ethereum, BNB Chain, and Solana to purchase its tokens directly from the market. The protocol will then permanently remove these tokens from circulation by sending them to a "burn" address. This process reduces the total supply and is designed to enhance the long-term value of the remaining tokens. The governance proposal responds to a 30% drop in WLFI's price, which fell from a peak of $0.331 to a low of $0.210 before stabilizing around $0.229. The decline was triggered by a recent unlock of 24.6 billion tokens that increased the total circulating supply to 27.3 billion, out of a maximum 100 billion. This event also reportedly increased the Trump family's holdings to a value of $5 billion. This buyback-and-burn strategy seeks to increase token scarcity and reward long-term holders by increasing their relative ownership. While community sentiment has been generally positive, some have raised concerns about treasury sustainability. Critics argue that dedicating all liquidity fees to this process could leave the protocol vulnerable during operational challenges or emergencies. Furthermore, the variable nature of liquidity pool fees makes the long-term impact on token supply uncertain. According to CoinMarketCap, WLFI was trading at $0.232 as of September 2 at 04:15 UTC, reflecting a 1.552% increase in its 24-hour trading volume.