Debuting with "a strong start but a weak finish," the "Trump family core token" proposes a "buyback and burn" plan.
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After a sharp decline following its market debut, the "Trump family core token" World Liberty Financial (WLFI) has proposed a "buyback + burn" plan to restore market confidence.
It is reported that the team plans to use all fees generated from protocol-owned liquidity to buy back and burn WLFI tokens, in hopes of alleviating investors’ concerns over token oversupply by reducing circulating supply. Despite a lukewarm market response, the project has received public support from some major players in the crypto industry, and related governance proposals continue to gain traction in the community.
Buyback and Burn Plan in Response to “High Opening, Low Closing”
On Monday local time, after its initial listing on major exchanges such as Binance, OKX, Upbit, Coinbase, and Bithumb, WLFI briefly reached a $40 billion valuation in the futures market, but was quickly sold off, with the current price around $0.23, a single-day drop of 24%. According to CoinGecko data, its market cap has dropped to $6.58 billion.
To address the crisis of market confidence, the WLFI team released a governance proposal on September 2, planning to use all protocol-owned liquidity fees on Ethereum, Binance Smart Chain, and Solana for buybacks and burns of WLFI tokens, permanently reducing the circulating supply.
The project team stated that this mechanism is intended to “remove tokens held by participants not committed to the long-term development of WLFI,” and emphasized that 100% of the fees would be used for burns to maximize the impact on supply. Fees from third parties or community liquidity providers will not be affected.
The team believes that as trading activity increases, the scale of burns will also grow, helping reinforce the narrative of scarcity.
Community Governance Disputes and Alternative Proposals
In addition to the official burn proposal, the community has also put forward another governance proposal, suggesting that 80% of still-locked WLFI be automatically staked in a pool, with rewards coming from the 20% community reserve.
Supporters argue this would turn idle supply into “productive assets” and alleviate selling pressure. Critics, however, point out that the plan is essentially a redistribution of tokens and is unlikely to yield real gains. Currently, discussion and support for this proposal in the community lag behind that of the official burn plan.
Despite pressure on market performance, WLFI continues to receive public support from some well-known figures in the crypto industry.
Tron founder Justin Sun called WLFI “one of the most important projects in the crypto sector” on social platform X, and pledged not to sell his unlocked WLFI. According to Arkham data, the WLFI treasury holds around $13.78 million in TRX, and Justin Sun personally holds around $693 million worth of WLFI, most of which is still vesting, indicating his intention for long-term holding.
WLFI's “high start and quick decline” and subsequent governance proposals highlight the challenges new crypto projects face in market pricing, liquidity management, and community governance. Whether the buyback and burn mechanism can effectively boost confidence remains to be seen based on its actual execution and market feedback.
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