Trump-Linked WLFI Burns $1.43M in Tokens After Buyback

Trump-affiliated DeFi project WLFI burns $1.43M in tokens after $1.06M buyback, aiming to restore market confidence.

World Liberty Financial (WLFI), a decentralized finance project associated with U.S. President Donald Trump, has undertaken a large-scale token burn. The platform destroyed 7.89 million WLFI tokens worth $1.43 million after completing a $1.06 million buyback across several blockchain networks. This came after a strong market dip, which led both developers and the community to pass a critical proposal to help regain trust from the investors.

WLFI Launches Buyback and Burn Amid Price Decline

According to Lookonchain, WLFI received just over 1.06 million dollars in fees and liquidity over Ethereum, Solana, and Binance Smart Chain. These funds were used to buy back 6,04 million WLFI tokens, which were permanently burnt. The blockchain tracker shared details of the transactions on X, highlighting the reduction in circulating supply. After this method, there are still 3.06 million tokens left in Solana’s total supply (excluding a small amount made overdue as Mayer Saltonissen’s race), worth almost $638,000 at the current price.

The buyback and burn were approved in the government vote on September 26. The proposal called for 100% of the liquidity fees collected to be allocated to the purchase of WLFI tokens on the open market. These tokens would then be burned in order to decrease total supply. The move came about when WLFI lost almost 60 per cent of its market value, adding to the clamor for corrective actions.

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According to community updates, the decrease in circulating supply is projected to increase scarcity, therefore stabilizing the price. Developers assured that all liquidity fees across major blockchains are committed to finance repurchase and burn mechanisms to commit to supply control in the long run.

WLFI Token Burn Seen as Guide for Other DeFi Projects

The WLFI community overwhelmingly supported the proposal, showing confidence in the platform’s recovery strategy. Moreover, members agreed that a regular buyback and burn would attract long-term investors. As a result, they believed it could counter the short-term bearish sentiment affecting token performance. Experts opine that decentralized projects’ visions are more and more influenced by such governance-led actions.

In addition to token supply management, WLFI has also tried to expand into the market. The project has signed an MOU with Bithumb, one of the popular cryptocurrency exchanges in South Korea. The partnership will help to increase exposure for WLFI’s stablecoin, USD1, which is already listed on Bithumb and Upbit. Developers hope that accessing Asian markets will diversify the user base and help bolster liquidity pools.

The burning of tokens is not unusual in DeFi, industry insiders say. Central banks use burns to manage inflation and increase scarcity. WLFI’s burn could create momentum for the project. However, the platform must rely on adoption and strategic alliances to succeed.

The influence of WLFI’s shift isn’t limited to its environment, either. If successful, the buyback and burn program can act as a guide for other decentralized projects facing the same price volatility issues. At the same time, the result may impact investor opinion towards interventions controlled by the Governance. With millions of tokens already off the market and new initiatives targeting the markets in progress, WLFI is well set for a recovery period, while the community awaits signs of fresh stability.