World Liberty Financial (WLFI), the decentralized finance (DeFi) project connected to former U.S. President Donald Trump, has executed a major buyback and burn initiative. The project burned 7.89 million WLFI tokens valued at $1.43 million, following a $1.06 million buyback funded through DeFi-generated fees and liquidity rewards.
WLFI’s Buyback and Burn Strategy
On-chain data from Lookonchain reveals that WLFI collected around $1.01 million in WLFI tokens and $1.06 million in fees from its liquidity operations. This capital was used to repurchase 6.04 million WLFI tokens across multiple blockchains.
Following the buyback, the team burned the tokens on BNB Smart Chain and Ethereum, while 3.06 million WLFI ($638,000) remain unburned on Solana, awaiting further action.
This move comes after WLFI’s price dropped 33% over the past month. As of Saturday, the token trades at $0.2049, recovering over 6% in 24 hours, though it remains down 38% from its all-time high.
Community Approval and Governance
The burning mechanism was approved in a recent governance vote, where 99% of WLFI holders supported the proposal. Under this framework:
- Fees from WLFI-managed liquidity pools are allocated for token buybacks.
- Purchased tokens are permanently removed from circulation through burns.
- Community or third-party liquidity pools are excluded.
The project believes this model will help reduce supply and ease selling pressure. Some analysts estimate the program could burn up to 4 million WLFI daily, equating to nearly 2% of supply annually, although exact figures remain uncertain.
Trump Family’s WLFI Holdings
The WLFI ecosystem is closely tied to the Trump family, who reportedly control about $5 billion worth of WLFI tokens. Following a recent scheduled unlock, 24.6 billion tokens entered circulation.
According to project documents, entities linked to Donald Trump, Donald Jr., Eric Trump, and Barron Trump initially held 22.5 billion WLFI tokens. The token briefly spiked to $0.40 after the unlock before stabilizing near its current range.
The WLFI buyback-and-burn marks an important step in the project’s effort to stabilize token economics and restore investor confidence. While the initiative has lifted short-term sentiment, long-term sustainability will depend on continued liquidity growth and community adoption.
With political ties and billions in holdings, WLFI remains one of the most closely watched tokens in the DeFi sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.