WLFI token burn strategy aims to stabilize market value and reduce supply
World Liberty Financial (WLFI), a decentralized finance project backed by the Trump family, announced it will begin a token buyback and burn program this week after its native WLFI token fell by 41% in September. The move is designed to reduce circulating supply and restore confidence among investors.
The WLFI team confirmed that the process will be transparent, with updates shared on each buyback and burn. In crypto markets, buybacks absorb selling pressure, while burning permanently removes tokens from circulation, creating scarcity that may support price stability.
“As tokens are consistently bought back and destroyed, the circulating supply decreases, which can help balance demand and value,” explained one blockchain analyst, noting that such mechanisms are becoming more common in DeFi ecosystems.
The initiative follows a community governance vote, which passed with 99% approval from WLFI holders. Under the plan, fees generated from WLFI’s liquidity positions across Ethereum, BNB Chain, and Solana will be redirected to purchase WLFI on the open market before sending them to a burn address.
The team emphasized that the measure aligns with long-term growth: “Every trade will remove WLFI from circulation, directly supporting scarcity-driven value creation,” the project stated. However, the plan will only use fees from WLFI-controlled liquidity pools, not community-managed or third-party pools.
While some market watchers estimate that as many as 4 million WLFI tokens could be burned daily—potentially eliminating nearly 2% of the yearly supply—the official proposal did not specify exact numbers. Analysts caution that the program’s impact will depend on actual trading volume and liquidity fees generated.
According to market data, WLFI traded at $0.19 on Friday, down from its September 1 peak of $0.33. Investors are now watching whether the buyback and burn strategy can restore stability after weeks of sharp volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.