After a hot debut that briefly pushed its market cap toward $10 billion, WLFI – the centerpiece token of World Liberty Financial – has cooled off, sliding more than 30% from recent highs.
The decline has prompted the project, tied closely to the Trump family, to float a new buyback-and-burn strategy that could reshape its token economy.
The initiative, which community members rushed to propose within a day of WLFI’s Binance listing, would dedicate all fees earned from the protocol’s own liquidity pools to repurchasing WLFI on the open market.
The acquired tokens would then be permanently destroyed, shrinking overall supply. For now, this applies only to positions managed directly by the protocol across networks like Ethereum, BSC, and Solana, but developers hinted that revenue from other sources could eventually be added to the program.
While price turbulence has dominated headlines, World Liberty Financial has been quietly broadening its ecosystem.
Its USD1 stablecoin, which recently expanded to Solana, added nearly half a billion dollars to its market cap in just a month, now sitting at $2.67 billion. The team has described the stablecoin rollout as part of a long-term plan to anchor WLFI within a wider DeFi infrastructure.
Despite the recent dip to $0.2095, WLFI has managed to find support, trading near $0.236 at press time. Derivatives traders appear undeterred: open interest in WLFI contracts is still hovering close to $920 million, signaling robust market engagement.
The financial implications for the Trump family have also been striking. The Wall Street Journal reported that the launch of WLFI instantly boosted their collective fortune by about $5 billion, making the token a bigger asset than much of their real estate portfolio.
Although Donald Trump is listed only as an honorary co-founder, his three sons take a direct role in the project, and the family is believed to hold less than 25% of the token supply.
If approved, the proposed buyback-and-burn policy could become a defining feature of WLFI’s tokenomics, aimed at countering volatility while supporting long-term value. For holders hoping the project can recover momentum after its sharp correction, the strategy might prove critical in the weeks ahead.
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Source: https://coindoo.com/wlfi-struggles-after-recent-launch-recovery-ahead-with-buyback-plan/