World Liberty Financial (WLFI), the decentralized finance project tied to former U.S. President Donald Trump, has executed a significant token burn worth approximately $1.43 million, following a $1.06 million buyback funded through DeFi-generated fees.

$1M buyback, $1.43M burn

Onchain data from Lookonchain revealed that WLFI collected $1.06 million in liquidity fees across multiple chains and used the proceeds to repurchase 6.04 million WLFI tokens on the open market. The project then burned 7.89 million WLFI tokens on Ethereum and BNB Smart Chain, permanently removing them from circulation.

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An additional 3.06 million WLFI tokens (valued at roughly $638,000) remain on Solana, awaiting a decision on whether they will also be burned.

WLFI buyback and burn. Source: Lookonchain

The buyback-and-burn move follows a sharp 33% decline in WLFI’s price over the past month, although the token has shown short-term resilience, climbing more than 6% in the last 24 hours to trade at $0.2049, according to CoinGecko. Still, WLFI remains down 38% from its all-time high.

Governance-backed burn strategy

The decision to initiate a systematic burn mechanism was approved earlier this month through a governance vote, with 99% of WLFI token holders voting in favor.

Under the plan, fees generated from WLFI-managed liquidity pools will continue to be used for token buybacks, which are then burned to reduce supply and counteract selling pressure. Notably, the program applies only to WLFI’s own liquidity pools and excludes community or third-party-managed liquidity.

Some blockchain analysts have suggested the burn program could retire up to 4 million WLFI per day, equivalent to roughly 2% of annual supply, though the project has not confirmed exact figures.

Trump family’s $5B WLFI fortune

WLFI has attracted significant attention due to its high-profile backers. A recent report revealed that entities tied to the Trump family control an estimated $5 billion worth of WLFI tokens following a large unlock of 24.6 billion tokens earlier this month.

The project’s official filings list DT Marks DeFi LLC alongside Trump family members Donald Jr., Barron, and Eric Trump as key token holders. Following the unlock, WLFI’s price briefly surged to $0.40 before pulling back to around $0.21.

With the new burn initiative in motion, WLFI aims to restore investor confidence and stabilize its token economics. However, market observers remain cautious about whether the project can sustain long-term demand amid ongoing volatility.