Since its inception, the Trump family’s World Liberty Financial crypto project has been the subject of much discussion. This situation has been reignited by the recent launch of its WLFI token, which is currently falling in value. This has provided an opportunity to carry out an initial massive burn of 47 million units.
World Liberty Financial attempts to turn things around
Donald Trump’s strategic rapprochement with the cryptocurrency sector gave rise to the family project World Liberty Financial, whose launch was announced by his sons in August 2024. What is its actual purpose? Let’s talk instead about its WLFI token, which quickly went on presale.
The operation got off to a slow start but eventually found investors, raising a total of $550 million. Then came the second stage of the process, with a Token Generation Event (TGE) held on September 1, accompanied by an immediate listing on the Uniswap platform.
It was a turbulent start, with the price of the WLFI token quickly falling in the face of massive sales by its holders, some of whom had already seen their initial investment increase 17-fold.
This was an opportunity to test the responsiveness of its governance, with an initial proposal to carry out a buyback of WLFI tokens using the liquidity fees held by the protocol on the Ethereum, Solana, and BNB Chain blockchains. The goal? To try to maintain its price in the face of the downward trend, but that’s not all.
A burn of 47 million WLFI tokens
The buyback procedure was only the first step in a much bolder operation. Indeed, data available on the Ethereum blockchain’s on-chain monitoring site Etherscan reports a burn of 47 million WLFI tokens, carried out 18 hours ago.
According to World Liberty Financial officials, this burn should increase “the relative ownership percentage of long-term committed holders” while removing tokens “held by participants not committed to the long-term growth of WLFI” from circulation.
As a guide, approximately 24.6 billion WLFI tokens have currently been released out of the 100 billion units of its maximum available quantity, representing slightly less than 25%. As a result, the burn represents a drop in the ocean of 0.19% of the tokens still to come.
At the time of writing, the WLFI price is still more than 30% below its all-time high of $0.33 on September 1. In other words, the burn did not have the expected bullish effect, but it may have helped to contain the decline by stabilizing the price at $0.23.
