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WLFI's approach to token burning encounters doubt as the Trump family's significant holdings raise concerns

WLFI's approach to token burning encounters doubt as the Trump family's significant holdings raise concerns

Bitget-RWA2025/09/27 11:47
By:Coin World

- World Liberty Financial (WLFI) executed a $1.43M token burn after a 99% community vote, aiming to reduce supply and stabilize prices. - The Trump-linked DT Marks DEFI LLC holds 22.5B tokens, raising concerns over conflicts of interest and early investor advantages. - WLFI’s price dropped 38% from its peak but rose 6% recently, with plans for a debit card and Bithumb partnership to expand adoption. - Analysts remain skeptical about the long-term effectiveness of buyback-and-burn tactics without broader ad

World Liberty Financial (WLFI), a decentralized finance initiative linked to former U.S. President Donald Trump and his family, has completed a $1.43 million token burn after conducting a $1.06 million buyback funded by DeFi-generated fees. This move, which received approval from 99% of

token holders through a governance vote, is intended to decrease the circulating supply and help stabilize the token’s value. By September 2025, the project had destroyed 7.89 million WLFI tokens on both the Smart Chain and networks, while 3.06 million tokens (worth $638,000) remain unburned on . The token’s value has fallen 38% from its peak but saw a 6% increase in a single day, with the latest price at $0.2049 Trump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback [ 1 ].

This buyback and burn approach uses fees collected from WLFI-operated liquidity pools, with all proceeds allocated to purchasing and permanently removing tokens from the market. The deflationary method, which does not include community or third-party pools, is meant to ease selling pressure and better align the token’s value with the protocol’s activity. On-chain data from Lookonchain shows the project gathered $1.06 million in fees and liquidity profits, which were used to buy back 6.04 million WLFI tokens Trump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback [ 1 ]. Experts estimate the program could eliminate up to 4 million tokens daily—about 2% of the yearly supply—though precise numbers have not been confirmed Trump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback [ 1 ].

The governance proposal for WLFI passed with overwhelming support, highlighting strong community endorsement. Project leaders have stressed their commitment to transparency, promising to make all buyback and burn transactions public. Still, there are ongoing debates about the program’s long-term impact. Although WLFI’s price has dropped 33% over the past month, recent volatility has led to mixed opinions among traders. Some believe the burn initiative could spark a 25% price surge, especially after WLFI’s recent debut on Robinhood, which briefly lifted its market capitalization to nearly $5 billion World Liberty Approves Full Token Buyback Burn [ 2 ]. Others remain doubtful, pointing out that similar deflationary strategies in other DeFi projects have often failed to deliver lasting price growth without broader adoption WLFI Launches 100% Fee-Funded Buyback and Burn Program [ 3 ].

WLFI’s association with the Trump family has intensified scrutiny. The Trump-affiliated DT Marks DEFI LLC controls 22.5 billion WLFI tokens, valued at around $5 billion after 24.6 billion tokens were unlocked in early September. This significant holding has sparked concerns about possible conflicts of interest, with critics claiming that early investors reaped outsized benefits from the token’s initial price rally. Despite these issues, the WLFI team asserts that the buyback and burn program is designed to reward long-term holders by reducing supply and increasing scarcity Trump-Linked WLFI Burns $1.43M in Tokens After Recent Buyback [ 1 ].

Looking forward, WLFI’s development plan includes growing its ecosystem through new partnerships and product launches. The project has unveiled plans for a debit card tied to its USD1 stablecoin and a retail payment application, aiming to connect traditional finance with the crypto world. Additionally, WLFI has entered into a memorandum of understanding with South Korean exchange Bithumb to broaden its reach World Liberty Approves Full Token Buyback Burn [ 2 ]. However, the effectiveness of these efforts will rely on continued user adoption and on-chain activity, as liquidity fees directly support the buyback and burn mechanism.

The wider DeFi community remains cautiously hopeful about WLFI’s approach. While token burns are now a common response to falling prices, their success depends on trading activity and overall market sentiment. WLFI’s recent price movements suggest a test of support near $0.19, with technical signals pointing to either a rebound toward $0.205 or a possible drop to $0.18. Analysts are watching closely to see how the buyback program affects WLFI’s circulating supply, which is currently at 99.95 billion tokens Trump Family’s WLFI Burns 47M Tokens After 31% Price Drop in September 2025 [ 4 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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