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WLFI’s 100% fee burn and buyback proposal aims to reduce circulating supply and support long-term value, but investor sentiment remains cautious as the token trades nearly 30% below its peak.
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Despite weak price performance, WLFI’s debut on major exchanges like Binance, OKX, and Bybit has driven strong trading volumes, signaling ongoing market interest in the Trump-backed DeFi project.
World Liberty Financial (WLFI), the Trump family–backed DeFi project, has been struggling to hold investor confidence despite bold moves in its tokenomics strategy. The WLFI token, which soared to a market cap near $10 billion upon launch, has since corrected sharply, falling more than 30% from highs of $0.32.
In an attempt to counter the selling pressure, the project has introduced a governance proposal to allocate all protocol-owned liquidity (POL) fees toward open-market buybacks and permanent burns of WLFI tokens.
The 100% fee burn initiative, paired with a buyback plan, is designed to shrink circulating supply and potentially drive long-term value.
The proposal, however, applies exclusively to WLFI-controlled liquidity pools, excluding contributions from community or third-party liquidity providers. Currently, WLFI generates fees from its POL positions across Ethereum, Binance Smart Chain (BSC), and Solana. These fees are converted into token buybacks, with the purchased tokens permanently removed from circulation via burn addresses.
While the strategy may seem aggressive on paper, the market response has been underwhelming. Following its recent dip to $0.2095, WLFI has shown a modest rebound, trading near $0.2358 at press time. Still, the sentiment remains cautious, with many traders unconvinced that buybacks alone can restore momentum.
The World Liberty Financial team remains optimistic, hinting at plans to expand the buyback-and-burn program by tapping additional sources of protocol revenue in the future. The project has also been pushing ecosystem growth, recently launching its USD1 stablecoin on Solana. The stablecoin’s market cap has jumped $467 million in just one month, reaching $2.67 billion.
Despite the price struggles, WLFI retains strong market participation. According to Coinglass, open interest for WLFI derivatives remains high at $920 million, suggesting traders are actively positioning around the asset.
Notably, the Trump family has reaped major gains from the WLFI launch. The Wall Street Journal reports their net worth swelled by roughly $5 billion, with WLFI now ranking as their most valuable holding. Donald Trump is listed as an “honorary co-founder,” while his three sons serve as co-founders of the project.
For now, WLFI’s fee burn and buyback plan highlight the project’s ambition, but until price performance turns, investor skepticism is likely to linger.
