WLFI's Burn Initiative: Is It Capable of Recovering from a 50% Price Drop?

World Liberty Financial (WLFI), a digital asset project supported by former U.S. President Donald Trump, has initiated a token buyback and burn scheme after receiving overwhelming approval in a governance vote. With 99.8% of participants in favor, the plan allocates all treasury liquidity fees from

, BNB Chain, and liquidity pools to purchase and permanently destroy tokens Trump-Backed World Liberty Financial to Launch Buyback and … [ 1 ]. This approach is designed to decrease the token supply, help stabilize price swings, and better align with the interests of long-term investors. Since its September 1 debut at $0.46, WLFI’s token price has dropped more than 50%, now sitting at $0.2280.

This buyback-and-burn process excludes fees from community or third-party liquidity providers, focusing exclusively on protocol-owned liquidity (POL) to ensure transparency. Acquired tokens will be sent to a burn address, and all transactions will be visible on-chain for public verification WLFI Holders Approve Buyback And Burn After 41% Price Drop [ 2 ]. The team highlights that this method is intended to benefit “dedicated long-term holders” by removing tokens from short-term speculators, thereby increasing the value of remaining tokens Trump-Linked WLFI Passes 100% Buyback & Burn Proposal [ 3 ].

The rollout began this week across the three main blockchains, with WLFI pledging to release comprehensive reports after each burn event. Market analysts have pointed out that the program could drive prices higher, though the actual impact will depend on the amount of fees generated. Crypto analyst Captain Faibik predicted a 25% price increase after the proposal passed, while others believe gains could reach 30–50% if the plan is widely adopted Trump-Linked WLFI Passes 100% Buyback & Burn Proposal [ 3 ]. Technical indicators show WLFI forming a falling wedge pattern, with resistance near $0.26 that could spark a short-term price bounce WLFI Burn Proposal Targets 50% Price Surge With Buybacks [ 4 ].

WLFI’s governance decision came after a volatile launch, during which the token lost 40% of its value in just three days, despite an initial burn of 47 million tokens Trump-Backed World Liberty Financial to Launch Buyback and … [ 1 ]. The proposal clearly stated its goal to “eliminate tokens held by those

committed to WLFI’s long-term vision and growth.” Still, some critics warn that buyback programs could divert resources from developing products and attracting new users, with some suggesting a greater emphasis on “productive tokens” rather than deflationary measures WLFI Burn Proposal Targets 50% Price Surge With Buybacks [ 4 ].

For WLFI to succeed over time, consistent execution and transparent reporting will be crucial. The project’s leaders have stated their intention to expand the program to include more revenue sources as the ecosystem evolves. Investor confidence will also depend on clear governance, such as who manages the treasury and how burn transactions are approved. While the initiative tackles immediate supply issues, its effectiveness in reversing WLFI’s price decline has yet to be proven.