Token burn aims to restore investor confidence after steep slide
World Liberty Financial has launched a token burn strategy, permanently removing 47 million WLFI tokens from circulation in an effort to support its falling price. The move comes just days after the project — linked to the Trump family — opened trading to the public.
Onchain data from Etherscan confirms the transaction took place on September 2, with the burned tokens reducing total supply to just over 99.95 billion. The burn represents 0.19% of the token’s circulating supply, according to CoinMarketCap.
The WLFI token debuted on secondary markets earlier this week, briefly reaching $0.331 before sliding. As of Wednesday, the token trades near $0.23, marking a 31% drop from its launch-day high.
Buyback and burn proposal gains traction
World Liberty has also proposed a buyback and burn program, funded through protocol-owned liquidity fees. The project’s team argues that reducing supply will “increase the relative ownership percentage of committed long-term holders” while discouraging speculative selling.
So far, community feedback has been largely positive, with most of the 133 comments under the proposal voicing approval. An official vote is still pending.
Industry voices weigh in
Some analysts remain cautious about the long-term viability of such measures. Kevin Rusher, founder of RAAC, said the WLFI launch highlights the immaturity of crypto markets. “The concern is that speculative trading continues to damage trust in crypto, and that’s the opposite of what is required to build a truly resilient, long-term financial system,” he noted.
Meanwhile, Mangirdas Ptašinskas of Galxe pointed out that the WLFI launch sent Ethereum gas fees soaring, with a $200 transfer costing as much as $50. “Our job is still far from done,” he said, urging developers to strengthen infrastructure ahead of mainstream adoption.
While token burns are often seen as a way to boost scarcity and price, WLFI’s steep decline underscores that investor sentiment remains fragile. The next phase of its journey may depend on whether buyback efforts can counter selling pressure and establish confidence in the token’s long-term growth.
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.