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WLFI completes $1.43M burn after multi-chain buyback
World Liberty Financial (WLFI), the decentralized finance token associated with former President Donald Trump, completed a multi-chain token burn worth roughly $1.43 million after executing a $1.06 million buyback. On-chain research from Lookonchain shows the project repurchased millions of WLFI tokens using fees and liquidity earnings generated by WLFI-managed DeFi pools.
According to on-chain records, the WLFI team aggregated 4.91 million WLFI (about $1.01 million) alongside $1.06 million in protocol fees and liquidity returns. The project deployed that $1.06 million to repurchase approximately 6.04 million WLFI on public markets, then proceeded to burn a larger total amount across networks.
WLFI burned 7.89 million tokens across BNB Smart Chain and Ethereum, while another 3.06 million WLFI—valued at about $638,000—remains on Solana pending further action by the protocol team.
On‑chain mechanics: fees, liquidity and repurchases
The burn follows a governance-approved mechanism that funnels fees from WLFI-controlled liquidity pools into token repurchases. In a recent governance vote, roughly 99% of participating WLFI holders greenlit the plan. Under the proposal, only fees generated by liquidity under WLFI’s direct control qualify for the buyback-and-burn program; third-party and community liquidity are excluded.
Lookonchain’s ledger shows the protocol collected both tokens and fiat-equivalent earnings from DeFi activity, then used on-chain swaps to buy WLFI back on open markets. Though the team repurchased 6.04 million tokens using $1.06 million, the final burned total reported reached 7.89 million after cross-chain transfers and additional adjustments.
Supply impact, burn rate projections and market reaction
Some blockchain analysts speculated the program might burn as many as 4 million WLFI per day at peak, equating to almost 2% of circulating supply annually—though precise sustained burn rates remain uncertain. The stated objective from the WLFI team is to reduce overall supply and provide downward-selling pressure relief, a common deflationary tactic in DeFi tokenomics.
Market reaction has been mixed. WLFI’s price fell about 33% over the past month prior to the burn event; CoinGecko listed WLFI around $0.2049 at the weekend, up more than 6% over 24 hours but still down over 38% from its all-time high. The short-term uplift suggests buyback news can produce temporary demand, but long-term price recovery will depend on liquidity, adoption, and further protocol actions.
Concentration of holdings and token unlock
Separately, Cointelegraph reported that an entity tied to Donald Trump and family members controlled roughly $5 billion worth of WLFI after a scheduled unlock of 24.6 billion tokens earlier in the month. The project’s initial-holder listing includes DT Marks DEFI LLC and Trump family members as owners of about 22.5 billion WLFI. That concentration of supply and the large unlock likely contributed to elevated volatility following the token’s brief price spike to $0.40 before retreating near $0.21.
For DeFi traders and analysts, key items to watch are further on-chain updates from the WLFI team, burn cadence, the status of the Solana-held tokens, and whether repurchases are sustainable through fee generation rather than external funding. These factors will determine if the buyback-and-burn program meaningfully eases selling pressure or simply creates episodic price volatility.
Source: cointelegraph
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