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Trump-Linked World Liberty Proposes Token Burn After 30% Price Drop

Trump-Linked World Liberty Proposes Token Burn After 30% Price Drop

World Liberty Financial (WLFI), the decentralized finance project tied to former U.S. President Donald Trump and his family, has unveiled a governance proposal to use all protocol fees to buy back and burn WLFI tokens — a move aimed at stabilizing prices and rewarding long-term holders.

Proposal to Burn All Protocol Fees

The governance motion suggests that 100% of liquidity fees generated from WLFI’s protocol-owned pools on Ethereum, BNB Chain, and Solana be used to repurchase WLFI tokens from the open market. These tokens would then be permanently destroyed through burning.

Supporters argue this would:

  • Reduce circulating supply and increase scarcity.

  • Boost relative ownership of long-term holders.

  • Directly link platform activity to token value.

“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction,” the proposal stated.

If approved, it would be the foundation for a broader buyback strategy, potentially expanding to include other revenue streams.

Community Reaction and Concerns

The majority of community feedback has been positive, with many favoring the “all-in” burn strategy. WLFI ambassador Tespmoore noted that alternatives such as a 50/50 split between treasury and burn were considered but ultimately rejected.

However, critics highlighted uncertainties, including:

  • The unknown scale of fees makes it difficult to estimate burn impact.

  • The absence of a contingency plan if the treasury needs funds for emergencies after committing all fees to burning.

Token Unlock Boosts Trump Family’s Holdings

Earlier this week, WLFI executed a massive 24.6 billion token unlock, increasing the Trump family’s holdings to an estimated $5 billion.

The project had initially claimed founder allocations, including those held by Donald Trump and his three sons — Donald Jr., Barron, and Eric — would remain locked, but the unlock significantly boosted their exposure.

WLFI now has a circulating supply of 27.3 billion out of a total 100 billion, giving it a market capitalization of roughly $6.6 billion.

Price Tanks 30% After Launch

WLFI’s price has struggled since launch, tumbling 36% from $0.331 to $0.210 before recovering slightly to $0.229, still down nearly 30% on the day.

The proposed token burn is widely seen as an effort to combat selling pressure and restore investor confidence.

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