Trump family-backed WLFI burns 47M tokens as price continues to drop

World Liberty Financial, the Trump family’s ambitious decentralised finance project, has officially burned a portion of the WLFI token’s circulating supply to enhance its value.

According to data shared by on-chain analytics platform Lookonchain, the project has burned 47 million WLFI tokens, permanently removing them from the ecosystem.

The burn event was executed earlier today, and data from Etherscan shows the tokens were routed to a designated null address, where they are inaccessible, and thereby effectively removed from circulation.

Following its first official burn, WLFI’s total circulating supply was just over 99.95 billion as of the time of writing.

The burned token represented a modest 0.19% of WLFI’s circulating supply and, therefore, the market reaction to the event was quite underwhelming. 

WLFI was down 6.4% in the past 24 hours and was trading over 30% below its all-time high that it hit on launch day just two days ago. 

Much of this downturn has been fuelled by heavy selling pressure stemming from early holders and short-term traders, which seems to be outweighing the deflationary impact of the burn. 

Despite the symbolic nature of the event, the scale of the burn was not enough to meaningfully shift market dynamics.

World Liberty proposes a token burning plan

Today’s token burn comes right after project developers put forward a proposal that involves a token buyback-and-burn program using 100% of fees generated by protocol-owned liquidity pools (POL) across Ethereum, Solana, and BNB Chain.

The project wants to use these fees to purchase WLFI from the open market and subsequently burn it.

The rationale here is that as more users engage with the project ecosystem, it would result in more fees being generated, and therefore more WLFI being removed from circulation. 

Developers pitched the mechanism as a way to eliminate “tokens held by participants not committed to WLFI’s long-term growth and direction.”

As of now, many of the community members have voiced support for the proposal, but an official vote has yet to take place.

WLFI token launch draws in scrutiny

Although WLFI’s token launch was hyped, it has drawn criticism from industry observers who questioned both its fundamentals and the optics of WLFI’s rapid decline.

Kevin Rusher, founder of real-world asset lending platform RAAC, didn’t mince words in his assessment.

In a post-launch statement, he said WLFI’s rollout exemplified the kind of “speculative mania” that continues to hinder mainstream trust in crypto.

“The concern,” Rusher argued, “is that such blatantly speculative trading continues to damage trust in crypto, and that’s the opposite of what is required to build a truly resilient, long-term financial system.”

Meanwhile, blockchain data compiled by StarPlatinum, a prominent crypto analyst and ambassador for the Ronin Network, revealed that wallets associated with early WLFI allocations began offloading substantial amounts of the token almost immediately after it went live on secondary markets.

“This is not decentralisation,” the analyst wrote on X.

The post Trump family-backed WLFI burns 47M tokens as price continues to drop appeared first on Invezz