- The newly launched Trump-linked WLFI token has crashed by more than 30% from its post-launch peak
- A new governance proposal aims to use protocol fees to buy back and burn WLFI tokens to reduce supply
- The launch generated an estimated $5B in paper wealth for the Trump family as the token hit a $10B market cap
World Liberty Financial (WLFI), the Trump family’s decentralized finance initiative, is under scrutiny after market moves following its token debut.
While the debut minted billions in paper wealth for the Trump family, the token’s price has dumped over 30% from its peak, forcing the community to propose an emergency buyback and burn plan to stabilize the market.
Related: World Liberty Financial Sets Sept 1 Launch for WLFI Token on Ethereum
The Proposal: A “Supply Squeeze” to Counter the Post-Launch Dump
Just one day after its listing on major exchanges including on Binance, a governance measure was introduced to directly address the token’s price volatility.
What is the buyback and burn plan?
The proposal directs 100% of protocol-owned liquidity (POL) fees toward open-market buybacks of WLFI. These repurchased tokens will then be sent to a burn address, permanently reducing the circulating supply.
Who does this plan benefit?
Crucially, the policy only applies to fees generated by WLFI-managed liquidity pools across Ethereum, Binance Smart Chain, and Solana.
Community and third-party LPs are not affected. This is a pro-community move designed to support the token’s value without taxing the ecosystem’s participants.
Billions for Insiders, Volatility for Traders
The volatility comes after a launch that generated massive short-term gains and an enormous market capitalization, primarily for the project’s founders.
How much is the Trump family’s stake worth now?
According to The Wall Street Journal, the initial price surge added an estimated $5 billion to the Trump family’s net worth. The project lists President Donald Trump as an “honorary co-founder,” with his three sons serving as co-founders.
Their stake, despite being less than 25% of the total supply, has quickly become one of the family’s most valuable assets.
What was the peak market cap?
At its peak, the WLFI token reached a market cap near $10 billion, placing it among the top 20 digital assets in the world just hours after its debut. The project’s long-term trajectory is now tied to how effectively it can manage its tokenomics, starting with this burn proposal, and grow its ecosystem, which includes the $2.2 billion market cap USD1 stablecoin.
Related: World Liberty Financial’s USD1 Stablecoin Reaches a $2.2 Billion Market Cap in Under 90 Days
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