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Introduction
World Liberty Financial (WLFI), the cryptocurrency venture linked to former US President Donald Trump, has executed a major token burn following a community-approved buyback program. The project destroyed 7.89 million WLFI tokens worth approximately $1.43 million across multiple blockchains. This strategic move aims to reduce circulating supply and strengthen token economics amid recent price pressures.
Key Points
- WLFI destroyed 7.89 million tokens worth $1.43 million across Ethereum, Solana, and BNB Smart Chain following a governance vote with 99% approval
- The buyback was funded by $1.06 million collected from project fees and liquidity pools managed directly by WLFI
- The token burn strategy aims to reduce circulating supply and mitigate selling pressure amid a 33% price decline over the past month
Governance-Backed Buyback Fuels Supply Reduction
The decision to adopt a buyback-and-burn model originated in a governance vote on September 26, where nearly 99% of participating holders supported the measure. Under this arrangement, fees generated from WLFI-managed liquidity pools are earmarked for token repurchases, with acquired tokens then permanently destroyed. The framework specifically excludes liquidity pools not directly operated by the project, focusing exclusively on WLFI-governed liquidity channels.
According to blockchain analytics firm Lookonchain, the initiative came after WLFI collected just over $1.06 million in fees and liquidity from its supported blockchains. These proceeds were redirected into token buybacks before being sent to burn addresses on Ethereum and BNB Smart Chain. The team repurchased 6.04 million WLFI across Ethereum, Solana, and BNB Smart Chain, then removed 7.89 million tokens from circulation—a burn representing approximately $1.43 million at current prices.
Multi-Chain Execution and Remaining Supply
The token burn operation spanned multiple blockchain networks, demonstrating WLFI’s cross-chain presence. Lookonchain’s transaction details show the permanent reduction of supply occurred primarily on Ethereum and BNB Smart Chain, with the team executing the burn addresses on these networks. The analytics account shared specific figures showing how the $1.06 million collected from fees was used to buy 6.04 million WLFI tokens before the larger burn operation.
Notably, approximately 3.06 million WLFI tokens, valued near $638,000, remain on Solana awaiting removal under the same plan. This indicates the buyback-and-burn initiative is ongoing, with additional supply reduction expected once the Solana-based tokens are processed. The staggered approach across different blockchains reflects the technical complexities of managing multi-chain token economics.
Market Context and Strategic Implications
The token burn comes during a challenging period for WLFI’s market performance. According to CoinGecko data, WLFI’s price has dropped by more than 33% over the past 30 days and remains 38% below its peak. However, the asset showed a modest rebound in the 24 hours following the announcement, trading at $0.2049 on Saturday—up more than 6%—suggesting potential market approval of the supply reduction strategy.
The WLFI team described the burn mechanism as a way to ease market pressures and strengthen token economics by curbing supply growth. “This approach reduces circulating supply and mitigates selling pressure,” the project stated, emphasizing their focus on WLFI-governed liquidity channels. The strategy aligns with common crypto-economic practices where projects remove tokens from circulation to increase scarcity and potentially support token value.
The development follows recent expansion efforts, including a strategic partnership with leading South Korean crypto exchange Bithumb, reflecting WLFI’s ambitions to grow its market presence. As the project continues to execute its tokenomics strategy, market participants will be watching whether the supply reduction can provide sustained support for WLFI’s price amid broader market volatility.
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