World Liberty Financial (WLFI), a decentralized finance project linked to former U.S. President Donald Trump, has executed a major token burn following a large-scale buyback. The team permanently removed 7.89 million WLFI tokens from circulation, valued at about $1.43 million. The move comes after the project spent $1.06 million repurchasing tokens across multiple chains. The strategy is part of a governance-approved plan to manage supply and stabilize the token’s market performance.
Buyback and Burn Strategy
Onchain data compiled by Lookonchain revealed that WLFI collected $1.01 million in WLFI tokens and $1.06 million in fees and liquidity earnings from its decentralized finance activities. The project then used $1.06 million to buy back 6.04 million WLFI from the open market.
Following the repurchase, the team conducted a burn of 7.89 million WLFI on both the BNB Smart Chain and Ethereum networks. However, 3.06 million WLFI, worth approximately $638,000, remains unburned on Solana while the project decides on further actions.
The buyback-and-burn process was introduced earlier this month after a governance vote in which 99% of WLFI holders supported the proposal. Under this mechanism, fees generated by WLFI-managed liquidity pools are directed toward token repurchases, which are then permanently removed from circulation. The project clarified that this process only applies to WLFI-controlled liquidity pools, excluding community or third-party liquidity.
https://x.com/lookonchain/status/1971816869066953206
Market Impact and Token Supply
The decision to implement the burn mechanism comes amid a period of price pressure for WLFI. The token has dropped 33% over the past month, according to CoinGecko. Despite a 6% rise in the past day to $0.2049, WLFI remains down more than 38% from its all-time high.
The WLFI team stated that the strategy is designed to reduce supply and ease selling pressure in the market. Analysts noted that some onchain observers estimate the program could burn up to 4 million WLFI daily, representing nearly 2% of the annual supply, though exact figures remain uncertain.
In addition to the burn, an entity linked to Trump and his family controls approximately $5 billion worth of WLFI. This follows a scheduled unlock of 24.6 billion tokens earlier this month, expanding the circulating supply and adding to market scrutiny.
The project’s leadership has emphasized that these burns are part of a longer-term plan to balance liquidity generation with supply management. By reducing tokens in circulation, WLFI aims to strengthen its DeFi ecosystem while addressing concerns over market volatility.
Stay informed with daily updates from Blockchain Magazine on Google News. Click here to follow us and mark as favorite: [Blockchain Magazine on Google News].
Disclaimer: Any post shared by a third-party agency are sponsored and Blockchain Magazine has no views on any such posts. The views and opinions expressed in this post are those of the clients and do not necessarily reflect the official policy or position of Blockchain Magazine. The information provided in this post is for informational purposes only and should not be considered as financial, investment, or professional advice. Blockchain Magazine does not endorse or promote any specific products, services, or companies mentioned in this posts. Readers are encouraged to conduct their own research and consult with a qualified professional before making any financial decisions.
About the Author: Brenda Mary
