World Liberty Financial (WLFI), the cryptocurrency with ties to the Trump family, is making waves with a bold new strategy to regain its footing. Following a turbulent debut on major platforms like Binance and Coinbase, WLFI has unveiled a buyback-and-burn program aimed at enhancing confidence and stabilizing its market presence.
WLFI’s Bold Move to Curb Supply
The crypto community is abuzz with the news of WLFI’s latest maneuver: a buyback-and-burn program. Essentially, WLFI plans to use fees collected from its liquidity pools on Ethereum, Binance Smart Chain, and Solana to repurchase its tokens on the open market. The twist? These tokens are destined for a burn address, effectively removing them from circulation and creating a deflationary environment. It’s a move that seems designed to address fears of oversupply, which have loomed since WLFI’s price plunged from its initial futures market valuation of over $40 billion to a current trading price of around 23 cents, according to CoinGecko.
“The program is about aligning long-term holders with WLFI’s growth trajectory,” the team articulated in their governance proposal. By focusing purely on burns, the strategy aims to reduce selling pressure and reinforce the narrative of scarcity, a principle that often resonates well in the DeFi space.
Community Debates and High-Profile Backing
While the buyback-and-burn initiative is garnering attention, it’s not without its controversies. A separate community-driven proposal is currently circulating, suggesting that 80% of WLFI tokens remain locked and staked, with rewards drawn from a 20% community reserve. Proponents argue this would turn dormant assets into yield-generating ones. Critics, however, caution that such a redistribution might not yield genuine returns.
As these debates unfold, WLFI isn’t short of influential supporters. Justin Sun, the founder of Tron, has been publicly backing the project on social media platform X. He hailed it as “one of the biggest and most important projects in crypto,” underscoring his commitment by not selling his unlocked tokens. Data from Arkham reveals WLFI’s treasury holds a substantial $13.78 million in TRX, while Sun’s stake in WLFI is pegged at approximately $693 million, with much of it vested long-term.
Historical Context and Market Reactions
WLFI’s journey has been anything but smooth. From its highly publicized inception to the sudden market jitters, the token’s trajectory mirrors the volatility that often characterizes the crypto landscape. Its current market cap sits at about $6.39 billion, a far cry from its initial highs. This rollercoaster ride has led many to question the long-term viability of such projects, especially ones with high-profile affiliations. For instance, WLFI’s imminent Solana rollout for USD1 stablecoin could be a strategic move to bolster its ecosystem and market presence.
Yet, the proposed burn mechanism isn’t entirely unprecedented. Similar strategies have been employed by other projects seeking to stabilize token values and instill investor confidence. The key, analysts suggest, will be in the execution and the broader market’s response to such interventions. This follows a pattern seen in other high-profile collaborations, such as the Trump Media and Crypto.com deal, which sent Cronos soaring and highlighted potential opportunities for other altcoins.
Looking Ahead: A Critical Juncture
As WLFI navigates these choppy waters, the community’s reactions and governance decisions will play a crucial role in determining its future trajectory. Will the buyback-and-burn initiative succeed in reigniting investor interest and stabilizing the token’s value? Or will the alternative staking proposal gain traction and shift the focus? The coming months will be pivotal.
For now, WLFI’s journey serves as a case study in the dynamic and unpredictable world of decentralized finance. As the cryptocurrency market continues to evolve, projects like WLFI must continually adapt and innovate—or risk being left behind in the relentless march of digital progress.
Source
This article is based on: Trump-Linked World Liberty Team Floats Buyback-and-Burn Plan as WLFI Sinks
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
