World Liberty Financial (Wlfi)The Trump-Family-affiliated Defi Project is throwing a new tokenomics maneuver to strengthen confidence after his Rocky Trading debut: A Repurchase-and-Brurn Program funded by protocoled liquidity fees.
The proposal comes as WLFI faces sharp market winds after its highly published trade debut across major exchanges, including Binance, OKX, Upbit, Coinbase, Bithumb and others.
WLFI trades with approx. 23 cents, down 24% a day, with a market capital of approx. 6.39 billion dollars, according to CoingeCKO. At the launch, Token commanded short values of over $ 40 billion in futures markets before sellers drove the price down.
According to a management proposal released on Tuesday, fees collected from WLFI’s liquidity positions at Ethereum, Binance Smart Chain and Solana would be used to buy WLFI in the open market and send it to a combustion address. This mechanism would permanently remove tokens from circulation and reduce supply over time.
“This program removes tokens from circulation that participants have not committed to WLFI’s long -term growth,” the team wrote, arguing that the design adjusts long -term owners with the protocol’s growth track.
The measure applies only to fees generated by WLFI’s own liquidity. Third-party or community’s liquidity providers would not be affected.
Alternatives, such as division fees between the Treasury and burns, were considered, but rejected in favor of maximizing the impact through 100% allocation to burns.
WLFIS deflation narrative
For WLFI’s backers, the Burn proposal is aiming to move the narrative from one of the oversight to one of the constructed scarcity. More trading activity would mean more fees, which in turn would result in more WLFI being removed from circulation.
At the same time, another government proposal that makes the rounds, this time from the community rather than the team, which would see 80% of the WLFI tokens still locked and automatically put in pools, with rewards drawn from 20% community reserve.
Supporters claim it would convert inactive delivery to productive assets and reduce sales pressure, but critics warn that it constitutes redistribution rather than real dividend generation.
The plan is still being discussed on the forum and has not been given traction compared to the official combustion proposal.
Despite the market’s headwinds and criticism from some token holders on the forum, WLFI’s camp is not without high profiled allies: Tron founder Justin Sun continues to support the project on X, calling it “one of the largest and most important projects in Crypto” and promises not to sell his unlocked tokens.
Data from Arkham shows that WLFIS Treasury owns $ 13.78 million in TRX, while Sun has about $ 693 million of WLFI’s token, much of it tied together in vesting events that strengthen his long-term efforts in the project.
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