World Liberty Financial (WLFI)The project defined to the Trump family is launching a new tokenomic maneuver to underpin confidence after its debut in rocky trade: a repurchase and burning program financed by liquidity rates owned by a protocol.
The proposal occurs when WLFI faces winds against the market and after its highly publicized commercial debut in the main exchanges, including Binance, OKX, Upbit, Coinbase, Bithumb and others.
WLFI is quoted at around 23 cents, 24% less in the day, with a market capitalization of approximately $ 6.39 billion, according to Coingecko. In the launch, the Token briefly ordered valuations of more than $ 40 billion in the futures markets before sellers reduce the price.
According to a government proposal published on Tuesday, the rates collected from the WLFI liquidity positions in Ethereum, Binance Smart Chain and Solana would be used to buy WLFI in the open market and send it to a burning address. This mechanism would permanently eliminate circulation tokens, reducing supply over time.
“This program eliminates the circulation tokens held by the participants not committed to the long -term growth of WLFI,” the team wrote, arguing that the design aligns the long -term holders with the protocol growth trajectory.
The measure is applied only to the rates generated by Wlfi’s own liquidity. Third or community liquidity suppliers would not be affected.
Alternatives were considered, such as the division of rates between the treasure and the burns, but they were rejected in favor of maximizing the impact through the 100% assignment to the burns.
WLFI deflation narrative
For WLFI sponsors, the burning proposal aims to change the narration of an excessive supply to one of engineering shortage. More commercial activity would mean more rates, which in turn would lead to more WLFI of circulation would be eliminated.
At the same time, another governance proposal is making the rounds, this time from the community instead of the team, which would see 80% of the WLFI tokens still blocked and automatically staked in groups, with rewards extracted from the community reserve of 20%.
Supporters argue that it would turn the inactive supply into productive assets and reduce sales pressure, but critics warn that it is equivalent to redistribution instead of a generation of genuine performance.
The plan is still being discussed in the forum and has not gained traction compared to the official burning proposal.
Despite the winds against and the criticisms of the market of some tokens holders in the forum, the WLFI camp is not exempt from high profile allies: the founder of Tron, Justin Sun, continues to support the project in X, calling it “one of the largest and most important crypto projects” and promising not selling their unlocked chips.
Arkham’s data show that WLFI’s treasure has $ 13.78 million in TRX, while Sun has approximately $ 693 million of the WLFI file, largely linked to the awarding agreements that reinforce their long -term participation in the project.
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