The World Liberty Financial (WLFI) token, linked to the Trump family, experienced a significant price drop of 15% to 30% shortly after its highly anticipated debut. This abrupt decline, which saw its value fall from above $0.30 to between $0.20 and $0.24, has prompted the token’s community and team to propose an aggressive buyback-and-burn strategy aimed at stabilizing its market presence.
Price Plunge and Supply Shock
The initial volatility was largely attributed to a massive token unlock, which injected approximately 25 billion WLFI tokens into the circulating supply. This sudden inflation drastically diluted the token's value and, consequently, the perceived worth of the Trump family's extensive holdings, estimated to be in the billions depending on the fluctuating price. Trading platforms like Binance, OKX, and Bybit saw considerable early volume, with roughly $1 billion changing hands within the first hour on some platforms. Reports also indicate that early investors were permitted to sell portions of their holdings, likely intensifying the selling pressure as the market absorbed the newly released tokens.
Community Responds with Burn Strategy
In an effort to counter the price depreciation and support long-term investors, World Liberty Financial's community and development team have put forward a proposal for a comprehensive buyback-and-burn program. This strategy entails utilizing 100% of the Protocol-Owned Liquidity (POL) fees generated from various blockchain networks, including Ethereum, BNB Chain, and Solana. These fees would be systematically used to repurchase WLFI tokens from open markets and permanently remove them from circulation, thereby reducing the total supply. While proponents believe this will bolster value, critics caution that such a mechanism might take years to meaningfully offset the substantial unlocked supply.
Political Scrutiny and Market Outlook
The project's explicit ties to former US President Donald Trump and his family have attracted considerable scrutiny from regulators and observers alike. Critics argue that when prominent political figures hold significant token positions, it inevitably raises questions about potential conflicts of interest and necessitates rigorous regulatory oversight. Although World Liberty maintains its status as a private venture operating under established governance rules, regulators have publicly stated their intention to monitor the token closely. Market participants are now keenly observing the outcome of governance votes on the proposed fee-to-burn plan and assessing its potential effectiveness in managing supply dynamics and restoring market confidence.
