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- World Liberty Financial burned 47 million WLFI tokens to combat a 31% price decline since Monday’s public launch.
- The token peaked at $0.331 but has fallen to around 23 cents, highlighting celebrity crypto project challenges.
- Experts argue celebrity tokens damage crypto credibility and that infrastructure issues prevent mainstream adoption.
World Liberty Financial, the cryptocurrency project backed by the Trump family, has initiated an emergency token burn of 47 million WLFI tokens as the digital asset continues its steep decline since launching to public trading on Monday.
Token Burn Strategy Aims to Boost Declining WLFI Price
The World Liberty Financial token has experienced significant volatility since its public debut, briefly reaching a peak of $0.331 before sliding to just over 23 cents—a staggering 31% drop from its opening high. On-chain data from Lookonchain revealed that the platform permanently removed 47 million WLFI tokens from circulation on Wednesday, representing 0.19% of the token’s circulating supply.
This token burn strategy is a common practice among crypto projects seeking to increase scarcity and theoretically boost the value of remaining tokens. The burned tokens were sent to a dedicated burn wallet on September 2, effectively reducing the total supply from 100 billion to approximately 99.95 billion tokens.
Protocol Proposes Systematic Buyback Program
Beyond the immediate token burn, World Liberty Financial has proposed implementing a comprehensive token buyback and burn program using protocol-owned liquidity fees. The team argues this approach will “increase the relative ownership percentage of committed long-term holders” while removing tokens from circulation that are “held by participants not committed to WLFI’s long-term growth.”
Currently, around 24.66 billion tokens—just over 25% of WLFI’s original supply—have been unlocked for trading. The majority of 133 respondents in the proposal’s comments section have voiced approval, though an official vote has yet to occur.
Industry Experts Question Celebrity Token Sustainability
The WLFI token launch has sparked broader discussions about the crypto industry’s maturity. Kevin Rusher, founder of RAAC ecosystem, suggests the hype surrounding celebrity tokens demonstrates that crypto is “still struggling to grow up,” emphasizing that true longevity depends on institutional adoption rather than short-term speculation.
Meanwhile, Galxe’s Mangirdas Ptašinskas noted that the token launch caused Ethereum gas fees to surge dramatically, with $200 transfers costing up to $50 in fees—a reminder that infrastructure challenges remain before mainstream adoption can occur.
As World Liberty Financial implements token burns to combat declining prices, the project serves as a case study for the broader crypto market’s ongoing evolution. While token burns may provide short-term price support, the long-term success of WLFI will likely depend on delivering genuine utility beyond celebrity endorsement and speculative trading.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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