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WLFI

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GameFi Guides

If They Can Do it to Sun, Who’s Next?’ Say Insiders as WLFI Claims Freeze Was to ‘Protect Users’

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World Liberty Financial (WLFI) is defending its decision to freeze hundreds of wallets, including Tron found Justin Sun’s, saying the move was meant to protect users from phishing-related compromises, not to stifle normal trading.

“WLFI only intervenes to protect users, never to silence normal activity,” the project wrote on X.

We’ve heard community concerns about recent wallet blacklists. Transparency first: WLFI only intervenes to protect users, never to silence normal activity. 🦅

— WLFI (@worldlibertyfi) September 5, 2025

WLFI said earlier this week that 272 wallets were blacklisted, with approximately 215 of those linked to a phishing attack and 150 compromised through support channels.

Justin Sun’s WLFI address was frozen on Friday, following several small “dispersion test” transfers between his own wallets after claiming unlocked tokens at launch, none of which were sales.

The outbound transfers from Sun-tagged wallets made it appear that the big-name WLFI investor was selling his tokens, but onchain data paints a different picture.

In a post on X, Nansen founder Alex Svanevik pointed out that Sun’s transfers didn’t match the timeline of WLFI’s token decline.

Nansen data shows Justin Sun transferred 50 million WLFI worth about $9.2 million on Sept. 4 at 09:18 UTC — three to five hours after the token’s steepest drop — meaning the transfer followed the crash rather than caused it.

Onchain data from Nansen shows a $12 million WLFI transfer from HTX to Binance by a third-party market maker.

The tokens were borrowed using HTX’s own capital as part of a routine rebalance, but the move came after WLFI’s sharpest declines and was too small to have moved the market, considering WLFI has a daily trading volume of over $700 million.

Once deposited on Binance, it is impossible to determine whether the tokens were sold or simply held.

Market participants instead point to broad shorting and dumping of WLFI through market makers and trading desks across several exchanges as the real driver of the crash.

Onchain records back this view: a transfer from BitGo to Flowdesk flagged by Nansen, coincided with the start of WLFI’s slide and has become a key datapoint in explaining the sell-off.

Meanwhile, WLFI’s decision to freeze funds linked to the crash set off nervous chatter among whales, market makers, and other trading desks that their tokens could be frozen by literal fiat.

“If they can do it to Sun, who’s next?” is how a person familiar with conversations among large market participants paraphrased it when speaking to CoinDesk.

WLFI is currently trading for $0.18, according to CoinGecko. It’s down 40% since listing.





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Justin sun trump wlfi
GameFi Guides

Justin Sun Faces Backlash After Urging WLFI to Unfreeze Tokens

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Tron founder Justin Sun has once again found himself at the center of crypto controversy, this time over his frozen holdings in World Liberty Financials (WLFI).

The project blacklisted Sun’s wallet last week, freezing nearly 595 million WLFI tokens worth over $100 million at the time. Sun has since taken to social media, urging the team to unlock his assets and warning that such actions undermine investor trust.

WLFI’s price trends to the downside on the hourly chart. Source: WLFIUSDT on Tradingview

Why Were Sun’s WLFI Tokens Frozen?

The dispute began after blockchain data revealed a wallet linked to Sun transferred nearly $9 million worth of WLFI tokens to an exchange. Shortly afterward, WLFI’s team blacklisted the address, effectively freezing his tokens.

Market observers claimed the move was designed to stop potential dumping that could further destabilize the token’s price, which has already lost more than 60% of its value since launch.

WLFI debuted at $0.46 but now trades near $0.18, raising concerns about whale activity and the project’s governance. Critics argue the blacklisting contradicts the very principles of decentralization that blockchain projects are supposed to uphold.

Sun Denies Dumping Allegations

In a series of posts on X (formerly Twitter), Sun rejected claims of market manipulation, stating the transfers were merely “small deposit tests” and not intended for selling. He called the freeze “unreasonable” and insisted that all investors should be treated equally.

“Tokens are sacred and inviolable, this should be the most basic value of any blockchain,” Sun wrote. He added that unilateral freezes risk eroding confidence in WLFI, a project he supported early with both capital and strategic backing.

On-chain analysis from firms like Nansen has also suggested Sun was not directly responsible for WLFI’s sharp price decline, instead linking the sell-off to large market-maker activity.

Governance Concerns and Market Outlook

The standoff between Sun and WLFI has amplified investor concerns about centralization and transparency within the project. Critics warn that blacklisting wallets without clear communication risks damaging WLFI’s credibility, especially at such an early stage.

In an attempt to stabilize prices, the WLFI team has announced a buyback-and-burn program, including the destruction of 47 million tokens. However, uncertainty remains high as the dispute with Sun continues and market volatility weighs on investor sentiment.

For now, Sun is pressing WLFI to restore his rights and unlock his frozen tokens, while the broader crypto community debates whether the project can recover trust, or whether this controversy marks the start of deeper governance challenges.

Cover image from ChatGPT, WLFIUSDT chart from Tradingview

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Wlfi Blacklisted Justin Sun’s Wallet For Moving $9 Million
GameFi Guides

WLFI Blacklisted Justin Sun’s Wallet For Moving $9 Million

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World Liberty Financial (WLFI), the crypto protocol linked to the Trump family, has taken the significant step of blacklisting a blockchain address belonging to its key investor, Tron founder Justin Sun. The action, executed on Thursday, effectively freezes 595 million unlocked WLFI tokens valued at approximately $107 million.

Blockchain records from Aarkham Intelligence, confirm that at 09:18 UTC, Sun’s wallet (0x5AB) pushed the $8.89 million transfer to 0xbdF…74B0. The recipient address was blacklisted soon after, triggering red flags.

In response to the development, Sun stated on X, that the transfers were not for selling purposes. He described the activity as “a few generic exchange deposit tests, with very low amounts, and then created address dispersion.” He insisted the transactions did not involve “any buying or selling” and “could not possibly have any impact on the market.”

The $9M transfer cost just $0.69 in gas, cheap for such high stakes. The funds originated from Sun’s Ethereum address and were routed through World Liberty Fi’s smart contract before landing at the destination now under restriction.

Sun’s Exposure Casts Shadow Over WLFI

The transfer adds to growing skepticism around WLFI, already under watch for its controversial backers and political ties. The token’s price has dropped over 21% in the past 24 hours.

This isn’t the first headline-grabbing move from Sun’s wallet. Over the past 72 hours, he’s shuffled assets across WLFI, USDT, and several others. His crypto portfolio, still sitting above $2.25 billion, is led by holdings in TRX, stETH, BTC, and AETHWETH.

The blacklisting of a wallet connected to one of crypto’s most recognizable figures is more than a blip. It spotlights the ongoing compliance vacuum in DeFi and the risks that come with massive, opaque token flows.

WLFI’s future now hinges on whether this was an isolated incident or the start of wider scrutiny. For investors and regulators alike, the real test may be what—and who—gets flagged next.

Also read: Figma’s 14% Drop Spotlights Bitcoin Holdings and Lockup Expiry



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Blockchain transactions of WLFI tokens linked to Justin Sun (Arkham Intelligence)
Crypto Trends

World Liberty Financial Blacklists Justin Sun’s Address With $107M WLFI

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World Liberty Financial (WLFI), the crypto protocol linked to Donald Trump and his family, on Thursday blacklisted Tron founder and key investor Justin Sun’s blockchain address, impeding him from transfering WLFI tokens.

The move affects 595 million unlocked WLFI tokens held on the address, worth roughly $107 million at current prices, according to Arkham data.

The action followed the Sun-linked address making several outbound transactions of WLFI tokens on the Ethereum blockchain — including one for $9 million worth of the tokens — blockchain data shows.

Blockchain transactions of WLFI tokens linked to Justin Sun (Arkham Intelligence)

Sun, translated to English from Chinese of the original X post, said that the “address only conducted a few generic exchange deposit tests, with very low amounts, and then created address dispersion, without involving any buying or selling, which could not possibly have any impact on the market.”

Representatives for Sun and World Liberty Financial did not immediately return CoinDesk’s requests for comment.

WLFI tumbled 20% over the past 24 hours. It’s down 42% since it started trading on exchanges on Sep. 1.

Sun, key investor in World Liberty Financial

Justin Sun emerged as a central backer of World Liberty Financial, initially stepping in with a $30 million token purchase and an advisory role in late 2024. Since then, WLFI has had increasing ties to the Tron ecosystem, adding Tron’s native token TRX (TRX) to its treasury and with Eric Trump revealing plans to launch the protocol’s USD1 stablecoin on Tron.

By mid-2025, Sun’s total investment in the protocol had grown to about $75 million. On the eve of WLFI token’s market debut he was reported to hold nearly $700 million worth of tokens, much of it still vesting-locked.

Sun said on Monday, when WLFI launched, that “we have no plans to sell our unlocked tokens anytime soon.”



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Elizabeth Warren Slams Trump’s WLFI Venture as ‘Corruption’
Crypto Trends

Elizabeth Warren Slams Trump’s WLFI Venture as ‘Corruption’

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Senator Elizabeth Warren has continued her ongoing criticism of Donald Trump, expressing her disdain over the family’s crypto activities.

Summary

  • Elizabeth Warren calls Trump’s WLFI venture “corruption” in response to his family’s crypto fortune of $5 billion.
  • WLFI’s price has continued to fluctuate, with the market cap currently at $5.61 billion.
  • Warren recently criticized the current crypto regulations, calling them ineffective and accusing them of benefiting Trump’s business interests.

Democrat member and representative of the state of Massachusetts, Senator Elizabeth Warren, has criticized the Trump family’s involvement in the newly launched World Liberty Financial (WLFI) token. In a September 2 X post, Warren slammed the venture, describing it as “corruption, plain and simple.”

The latest comment from Warren follows the recent trading debut of WLFI, a Trump-backed cryptocurrency, which briefly pushed the family’s stake including more than 22 billion tokens held through DT Marks DEFI LLC to a paper value of over $5 billion. This marked the biggest single-day jump in the family’s fortune and at its peak, made WLFI the family’s most valuable asset, surpassing even their long-standing real estate portfolio.

However, the multi-billion-dollar valuation is not entirely real money, as it is based on WLFI’s price surge from at launch to $0.46. The figure has also since dropped due to the token’s volatile price movement. Despite an initial surge on Monday, WLFI has been struggling in the past two days, as buying pressure faded and the market showed increasing signs of sell-offs, pushing its value to a low of $0.20.

While it briefly climbed to $0.24 on Tuesday, the token could not hold the upward trend, and the price soon dipped again. At the time of writing, WLFI trades at $0.22, a 5% drop on the day, with its market cap hovering around $5.61 billion.

Elizabeth Warren’s continued criticism of Trump’s crypto ventures

This is not the first time Senator Warren has expressed concerns about Trump’s crypto-related ventures. She has long been a vocal critic of crypto and has consistently criticized Trump’s involvement in the industry. Warren previously raised alarms over proposed crypto regulations like the GENIUS stablecoin act and the Digital Asset Market Clarity (CLARITY) Act, calling them too lenient.

“We need strong crypto regulation, not an industry giveaway that puts our economy at risk and supercharges President Trump’s corruption,” Warren said in an earlier statement. She emphasized the need for robust regulation and went so far as to call for bans on elected officials from trading or engaging in crypto businesses, citing Trump’s ties to the industry.

Meanwhile, Warren’s criticism is not just focused on WLFI but the broader influence of crypto on U.S. politics. She warned that ineffective regulations would allow politicians, like Trump, to profit off their industry connections, resulting in conflicts of interest that could distort the market.

The senator is not the only one to express concerns regarding Trump’s involvement in crypto. Her sentiments have been shared by other influential figures, who also warn that his dual roles in politics and crypto-related ventures could manipulate the market.

However, the White House has dismissed these concerns, noting that the president’s business ventures and political activities are separate, and that no conflicts of interest are present.



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World Liberty Burns 47M Tokens as WLFI Price Slides
Crypto Trends

World Liberty Burns 47M Tokens as WLFI Price Slides

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The Trump family’s crypto project, World Liberty Financial, has begun burning its namesake token in a bid to boost its price, which has been in decline since launching to the public on Monday.

Onchain data first reported by Lookonchain showed the platform burned 47 million World Liberty Financial (WLFI) tokens on Wednesday, permanently removing them from the supply.

The token began trading on secondary markets for the first time on Monday, with its early investors allowed to sell their holdings to the public. The token briefly hit a peak of $0.331, but it has continued to decline, dropping 3.8% in the past day to just over 23 cents.

Crypto projects undertake token burns in a bid to tighten supply and theoretically boost the value of the remaining tokens.

Source: Lookonchain

Burn a fraction of WLFI’s supply

CoinMarketCap shows around 24.66 billion tokens, or just over 25% of WLFI’s original 100 billion supply, have so far been unlocked, with the burn representing 0.19% of the token’s circulating supply. 

The transaction on Etherscan shows that the tokens were sent to a burn wallet on Sept. 2, with Etherscan now showing that the tokens’ total supply has been reduced to just over 99.95 billion.

World Liberty put forward a proposal on Tuesday to implement a token buyback and burn program using protocol-owned liquidity fees in an effort to drive up the scarcity and price.

The team claims in the proposal that a token burn would “increase the relative ownership percentage of committed long-term holders,” while removing from circulation tokens “held by participants not committed to WLFI’s long-term growth.” 

The token is down over 31% from its opening high on its launch day, as short sellers offloaded the token, a problem the token burn aims to address.

The majority of the 133 respondents in the comments section below the proposal have voiced approval, with an official vote yet to occur.

Token launch shows market needs time to mature

Kevin Rusher, founder of real-world asset borrowing and lending ecosystem RAAC, said in a statement after the launch, he thinks the hype around the WLFI token shows crypto is still struggling to grow up.

He argues that true longevity in the ecosystem will be determined by institutional adoption, not “celebrity tokens or short-term hype.”

Related: Trump family’s World Liberty stake surges to $5B after token unlock

“The concern, however, is that such blatantly speculative trading continues to damage trust in crypto, and that’s the opposite of what is required to build a truly resilient, long-term financial system,” Rusher added.

Meanwhile, Mangirdas Ptašinskas, head of marketing and community at Web3 identity and rewards platform Galxe, said the token launch sent Ethereum gas fees “into the stratosphere,” which he thinks should be a warning to builders that “our job is still far from done.”

“If a spike in trading can suddenly push fees on a $200 transfer to $50, there is still work required to prepare the crypto ecosystem for the mainstream adoption that is undoubtedly coming,” he said. 

Magazine: The one thing these 6 global crypto hubs all have in common…



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WLFI crypto holders targeted by phishing attacks at scale post launch
NFT Gaming

WLFI crypto holders targeted by phishing attacks at scale post launch

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Experts warn that scammers are specifically targeting the hype around Trump’s WLFI token.

Summary

  • Scammers are deploying phishing attacks at scale, exploiting the hype around WLFI
  • Phishing attacks weaponize Ethereum’s new functionality, enabling wallets to act as smart contracts
  • Ethereum’s EIP-7702 enables users to sign multiple complex transactions at once

The launch of World Liberty Financial (WLFI) cryptocurrency, linked to U.S. President Donald Trump, resulted in unprecedented hype. With volumes rivaling many of the biggest crypto projects, scammers were prepared to exploit the situation.

Shortly after the launch on Sept. 1, Yu Xian, founder of the blockchain security firm SlowMist, reported phishing attacks at scale. He explained that attackers are using new functionality built into Ethereum wallets introduced with Ethereum’s Pectra upgrade.

SlowMist’s Yu Xian on one case of WLFI EIP‑7702 “delegate” scam | Source: X

According to Yu Xian, the EIP-7702 “delegate” function enables external accounts to act like smart contract wallets. While this improves functionality, it also enables attackers to hijack the delegate mechanism if they compromise the private key.

How scammers target WLFI holders

The EIP-7702 “delegate” scam works as follows. The attackers first exploit a private key via phishing. Then, they embed a malicious delegate smart contract in the wallet. At that point, once a victim makes any transaction, the malicious code executes, draining the victim’s tokens.

The main reason attackers opt for the delegate scam is scale. Traditional phishing requires attackers to monitor and manually drain wallets. With delegate contracts, they can set parameters that auto-execute transactions, for instance to receive WLFI tokens via airdrop.

This is not the only type of scam that targets WLFI holders. For instance, attackers also try to trick users into buying fake WLFI tokens. In one case, attackers targeted one user who had bought WLFI tokens. They then airdropped honeypot WLFI tokens until the user accidentally bought a fake token on Phantom Swap. The victim lost $4,876 to the scheme.



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NFT Gaming

Morning Minute: Trump Family Makes $6B as WLFI Goes Live

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Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

Today’s top news:

  • Crypto majors slightly green out of long weekend; BTC at $110,000
  • Trump family WLFI token has volatile debut, now at $25B FDV
  • BMNR discloses $8.98B in crypto holdings + cash on hand
  • Hyperliquid posts $100M in monthly revenue, new ATH
  • Pudgy Party reaches top 10 in iOS Free Games rankings

🇺🇸🦅 Trump Family’s WLFI Goes Live

The Trump family has officially launched another token.

And added nearly $6B in paper wealth to the family stack.

📌 What Happened

Within hours, the token ranked among the most valuable new coins by market cap, while disclosures indicate the Trump family holds 22.5B WLFI (worth ~$6B at current prices (tokens are locked under a TBD vesting schedule).

Quick TL;DR on WLFI:

  • Chain & design: WLFI is an Ethereum token tied to World Liberty’s planned lending/borrowing platform (the DeFi app itself hasn’t launched yet)
  • Early trading stats: WLFI was trading in the $30B-$40B FDV range on Hyperliquid premarket before going down only on Monday
  • Sale history: Public rounds priced WLFI at $0.015 and $0.05, raising ~$500–$550M, meaning early buyers were up ~1,700% at peak intraday prices
  • Float & locks: ~24.7B WLFI circulating out of 100B total supply; 33.5B team tokens are locked with vesting TBD (family’s 22.5B WLFI are included in locked holdings)
  • Ecosystem tie-ins: WLFI sits alongside the project’s dollar stablecoin USD1, already live and listed among major stables

As for price action, the token opened around $0.35 before falling all the way to $0.21 and rebounding to $0.25 overnight.

A volatile start, and expect more volatility as new proposals like the late evening token buyback and burn proposal continue to push through.

🗣️ What They’re Saying

“We are now live!!!! Our team has always believed in American strength and leadership. With today’s WLFI token launch, we’re setting a new standard for financial freedom; built on trust, speed, and U.S. values. This is a huge moment for the future of money!” Eric Trump on X

“Big day – World Liberty Fi just launched the $WLFI token. This isn’t some meme coin, it’s the governance backbone of a real ecosystem changing how money moves. Freedom + finance + America FIRST. Home Team” — Donald Trump, Jr. on X

the bull thesis on @worldlibertyfi is pretty simple

this is the trump boys’ dynastic legacy on the line here

hard to see the other crypto stuff they’re doing work on massive scale if wlfi doesn’t

high 10 or 11 figures in future value of all their crypto projects on the line

— Mike Dudas (@mdudas) September 1, 2025

🧠 Why It Matters

The bull case for WLFI is fairly straightforward.

Few tokens launch with this level of built-in audience and national attention.

And many believe that the Trump family’s future in crypto hinges on the success (or failure) of this project.

So they’ll have every incentive to pump the token.

But on the bear side, the protocol is effectively an AAVE fork (and not even live yet!) and trading 4-5x higher.

Plus the vesting schedule is apparently TBD and can be changed via vote, meaning large unlocks could come unexpectedly.

With presalers up so much, expect more sell pressure for the near future. But if and when it finds a bottom, don’t be surprised if WLFI does go on a run.

And of course, any announcements or surprises from the team could change that trajectory…



🌎 Macro Crypto and Memes

A few Crypto and Web3 headlines that caught my eye:

In Corporate Treasuries

In Memes

  • Memecoin leaders are mixed and chopping on the day; DOGE -2%, Shiba even, PEPE -1%, PENGU +1%, BONK -3%, TRUMP -8%, SPX -5%, and FARTCOIN +2%
  • PWEASE (+90%) and SPARK (+45%) led top onchain movers

💰 Token, Airdrop & Protocol Tracker

Here’s a rundown of major token, protocol and airdrop news from the day:

  • Hyperliquid posted its highest-ever revenue month in August with over $102M in revenue
  • LINEA opened for pre-market trading on Hyperliquid at $0.04 (~$3B FDV)
  • Pudgy Party reached 7th in the iOS ‘Free Games’ app store rankings over the weekend
  • Yeet is approaching its $500M milestone on Monday, while Myriad hit $10M in lifetime prediction market volume (Disclaimer: Myriad is a prediction market launched by Decrypt‘s parent company DASTAN)
  • Pigskin dot Fun launched an NFL-style fantasy card game over the weekend, then issued refunds to participants after several issues with its mint

🤖 AI x Crypto

Section dedicated to headlines in the AI sector of crypto:

  • Overall market cap fell 2% at $12.7B, leaders were mixed
  • FARTCOIN (+2%), VIRTUAL (-4%), TIBBIR (+4%), aixbt (-3%) & ai16z (-9%)
  • CAESAR (+20%) and IRIS (+20%) led top movers

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

  • ETH NFT leaders were mostly even over the weekend; Punks even at 46.5 ETH, Pudgy even at 10.1, BAYC -6% at 9.1 ETH
  • PROOF PASS (+39%) was a notable top mover
  • Bitcoin NFTs were mostly flat, led by Twelvefold (+11%)
  • Abstract NFTs were mixed, led by Abstractio (+20%)
  • XCOPY’s “hello admin dm me” sold for 70 ETH ($308,000) on Gondi

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XPL/USD (TradingView)
Crypto Trends

Crypto Trader Banks $250M on Trump-Linked WLFI Token After $38M Plasma Win

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A trader who made $38 million trading last week’s plasma (XPL) volatility secured another heft payday on Monday, profiting $250 million on the release world liberty financial (WLFI), a decentralized finance (DeFi) token linked to U.S. president Donald Trump’s family.

Etherscan data shows that the wallet in question, belonging to a trader known on derivatives platform HyperLiquid and X as Techno Revenant, invested $15 million in the WLFI token sale last year before being distributed 1% of the total supply on Monday, worth around $250 million.

The nine-digit score comes after the trader made $38 million on HyperLiquid last week, trading XPL as it spiked and wiped out $130 million in open interest on the futures market.

XPL/USD (TradingView)

WLFI began trading on Monday, spiking to 40 cents before retreating to 25 cents in a rollercoaster session that experienced more than $5 billion in trading volume.

While Techno Revenant calmly collected a $250 million payday, others were not as lucky as hackers ran a targeted phishing campaign against WLFI token holders.

Security experts labeled it a “classic EIP-7702 phishing exploit” as hackers exploited a loophole tied to Ethereum’s recent Pectra upgrade.

Read more: Holders of Trump’s Crypto Token Targeted by Hackers in Phishing Exploit



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Crypto Trends

WLFI Token Falls on Debut as Governance Weighs Liquidity Fee Buyback Plan

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In brief

  • The buyback plan would redirect 100% of fees from protocol-owned liquidity pools across Ethereum, BSC, and Solana.
  • Proponents claim that linking fees to token burns enhances scarcity and boosts long-term value for holders.
  • Analysts caution the effect may be limited by upcoming unlocks and WLFI’s high valuation.

Less than a day through its Labor Day debut, World Liberty Financial’s WLFI token fell sharply as trading volume swelled nearly tenfold.

The governance token dropped from a high of $0.33 to near $0.21 in late Monday trading before settling at around $0.245, with trading volume increasing from approximately $259 million at launch to $2.5 billion, according to data from CoinGecko.

WLFI is down approximately 14% from its debut price of $0.28, but remains significantly higher for early whitelisted buyers who acquired tokens at around $0.015 each.

In light of recent developments, a governance proposal has appeared, calling for all liquidity fees from the project’s pools to be directed toward buybacks and permanent burns.



Posted on the project’s governance forum, the proposal aims to redirect all fees from protocol-owned liquidity on Ethereum, BSC, and Solana into open-market WLFI purchases, which are then sent to a burn address, thereby permanently reducing the supply.

If approved, WLFI would collect fees from its own liquidity positions on Ethereum, BSC, and Solana, use them to buy tokens back on the market, and send the purchased tokens to a burn address.

The proposal describes this as a measure for “direct supply reduction” that would effectively increase “relative weight for committed long-term holders.” It also links the mechanism to network activity, stating that “more usage = more fees = more WLFI burned.”

However, analysts say the effect may be less decisive when weighed against WLFI’s broader token economics.

“While the buyback-and-burn model can provide structural support for the token price, its overall impact may be limited given WLFI’s large implied valuation and relatively low circulating supply,” Min Jung, senior analyst at quantitative trading firm Presto, told Decrypt.

Jung notes that supply pressures may also outweigh the proposal’s impact.

“The scale of upcoming unlocks is likely to exceed the buyback amount, and with few live products currently driving organic demand, the long-term effect on price stability remains uncertain,” Jung explained.

WLFI’s approach mirrors shareholder-return tactics more common in mature firms than in growth-stage ventures, Jung said.

“In traditional markets, companies with high growth typically reinvest profits rather than prioritizing buybacks or dividends,” he explained. “Allocating all liquidity fees exclusively to burns could limit WLFI’s flexibility to fund product development, ecosystem incentives, or strategic investments.”

But given the scale of WLFI’s fundraising, the treasury may still be “sufficient to support future growth,” he added.

Echoing that sentiment, Ryan Yoon, senior analyst at Tiger Research, told Decrypt the buyback-and-burn mechanism “should theoretically support token value through supply reduction.”

WLFI currently lacks “operational services beyond basic liquidity provision,” which could result in minimal fee generation, Yoon said.

Positioned as a decentralized finance project, World Liberty Financial was designed as a lending and borrowing service, although its core platform has yet to be launched. 

The Trump-backed venture has already rolled out a dollar-pegged stablecoin, USD1, which currently ranks as the sixth-largest by market capitalization, according to CoinGecko data.

The project was co-founded by nine individuals, including U.S. President Donald Trump, his three sons, and U.S. special envoy to the Middle East Steven Witkoff, according to its website.

In July, Trump disclosed he had earned a windfall of $57.3 million from the venture. Along with his meme coin deals and an exclusive dinner in April, the president’s links to crypto have stirred controversy in Washington, with some lawmakers claiming possible conflicts of interest.

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