World Liberty Team Suggests Buyback-and-Burn Strategy as WLFI Prices Drop

Trump-Linked WLFI Proposes Buyback-and-Burn Plan Amid Early Trading Losses

World Liberty Financial (WLFI), the Trump-family-affiliated DeFi project, has unveiled a buyback-and-burn initiative aimed at boosting investor confidence following a turbulent market debut. The plan would use all protocol-owned liquidity fees to repurchase WLFI tokens on the open market and send them to a burn address, permanently reducing the circulating supply.

The announcement comes as WLFI faces significant headwinds after listing on major exchanges, including Binance, OKX, Upbit, Coinbase, and Bithumb. The token is currently trading near $0.23, down 24% in a single session, with a market capitalization of roughly $6.39 billion, according to CoinGecko. At launch, WLFI briefly commanded valuations above $40 billion on futures markets before a swift sell-off.

Under the governance proposal released Tuesday, the buyback-and-burn mechanism will apply exclusively to fees generated from WLFI’s own liquidity pools on Ethereum, Binance Smart Chain, and Solana, leaving third-party and community-provided liquidity unaffected. Alternatives such as splitting fees between treasury and burns were considered but rejected in favor of maximizing the deflationary impact.

“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth,” the team wrote, emphasizing alignment between token supply and protocol sustainability.

For WLFI’s supporters, the plan aims to shift the narrative from oversupply to engineered scarcity, where higher trading activity generates more fees, resulting in increased token burns. Concurrently, a community-led governance proposal is circulating, suggesting that 80% of WLFI tokens remain locked and staked, with rewards drawn from the remaining 20% reserve. While proponents argue this would reduce selling pressure and activate idle tokens, critics warn it constitutes redistribution rather than real yield generation. The community plan has yet to gain traction relative to the official burn initiative.

Despite market pressures and forum criticism, WLFI retains high-profile backing. Tron founder Justin Sun has publicly endorsed the project on X, describing it as “one of the biggest and most important projects in crypto,” and pledging not to sell his unlocked tokens. Arkham data shows WLFI’s treasury holds $13.78 million in TRX, while Sun owns approximately $693 million in WLFI tokens, much of which is tied to vesting schedules reinforcing his long-term commitment to the project.