- World Liberty Financial began burning its WLFI tokens to reduce supply and support price.
- 47 million WLFI tokens were burned, or 0.19% of circulating supply.
- WLFI’s price fell over 31% from its launch high as early investors sold off holdings.
- A proposal suggests continued token buybacks and burns to increase scarcity and reward long-term holders.
- Analysts say the event highlights challenges for crypto markets, including speculation and high transaction fees.
World Liberty Financial, a new crypto project linked to the Trump family, started burning its WLFI tokens this week to tighten supply and help stabilize its falling price. The burn took place on Wednesday, days after the token launched for public trading.
According to onchain data from Lookonchain, the platform permanently removed 47 million WLFI tokens by sending them to an inaccessible wallet. As tracked by CoinMarketCap, the burn accounted for 0.19% of WLFI’s circulating tokens and left a total supply of just over 99.95 billion.
The WLFI token, which started trading on Monday, reached a high of $0.331 before falling by more than 31% as early backers exited their positions. Recent data shows WLFI traded just above $0.23 after a 3.8% dip within 24 hours of the burn event.
World Liberty Financial proposed a new buyback and burn program using protocol fees to further support the token, stating that burning tokens would “increase the relative ownership percentage of committed long-term holders,” and remove coins held by those not invested in WLFI’s future. Over 25% of the project’s original 100 billion tokens have been unlocked since launch.
Most community members responding to the proposal have indicated support, though a final community vote is pending. Short-term traders and large sell-offs have been cited as factors in the price drop that the latest burn attempts to counter.
Industry voices have weighed in on the launch and its impact on the broader crypto space. Kevin Rusher, founder of asset lending firm RAAC, stated that the WLFI launch shows crypto markets still face maturity challenges, noting that lasting value will depend on institutional participation rather than “celebrity tokens or short-term hype.”
Meanwhile, Mangirdas Ptašinskas from Galxe, a Web3 rewards platform, noted that the surge in trading volume significantly increased Ethereum gas fees, sometimes raising transfer costs on a $200 transaction to $50. He suggested this demonstrates the need for further development before crypto achieves mainstream adoption.
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