Key Takeaways
WLFI burn setup takes trading fees from POL and recycles them into buybacks and burns. Could this tighter float be the anchor long-term holders need?
World Liberty Financial’s [WLFI] launch was a textbook volatility spike.
The token ripped 130% to $0.48 right out of the gate, only to get sold off almost 50% shortly after. It marked a classic FOMO-driven “pump-and-dump” action, sending some early LTHs running for the exits.
Now the devs are digging in. They’ve floated a WLFI burn proposal to tighten the float and reduce circulating supply. The big question is whether this supply-side squeeze will be enough to stop the bleed.
Turning fees into value
WLFI’s burn proposal leans on a classic supply-shock playbook.
Day one unlocked 24.6 billion tokens, with another 75.4 billion still waiting in the wings. However, with that kind of float and the choppy price action we’ve seen, a squeeze down the line feels baked in.
The devs’ solution? A fee-burn feedback loop. Since WLFI trades on Ethereum, Solana, and BSC, the protocol scoops up fees across those chains, buys WLFI off the market, and torches it to a burn wallet.
Source: Dune
Here’s why that matters: WLFI’s DEX volume spiked to $128 million.
Now, that doesn’t mean $128 million worth of WLFI gets burned. Instead, the trading fees from protocol-owned liquidity (POL) flow into the burn, such as Uniswap (Ethereum), Raydium (Solana), or PancakeSwap (BSC).
For example, if fees averaged 0.3% per trade, $128 million in volume could generate around $384,000 in fees. That entire amount, under the proposal, would be recycled into WLFI buybacks and burned, cutting the supply.
WLFI burn designed to strengthen commitment
The WLFI burn proposal is built to realign supply around LTHs.
Nothing highlights the weight of LTHs more than Justin Sun. The TRON founder unlocked 20% of his WLFI stack worth nearly $200 million, while his total bag clocks in at a hefty $891.2 million.
That kind of whale footprint makes LTH behavior a key variable in WLFI’s supply dynamics. Backing this, on Ethereum, holder concentration is off the charts. The top 100 wallets command 98.23% of WLFI supply.
Source: EtherScan
In practice, that means price action is heavily whale-governed.
Against that backdrop, the WLFI burn proposal shapes up as a key strategic lever. The net effect? By stacking pressure each time volumes rotate higher, it keeps LTH commitment anchored.
Sure, it’s too early to call this the end of WLFI’s bleed. What it does signal, though, is the devs doubling down on a strategy. By setting up the WLFI burn mechanism, they’re effectively buying the project more runway.
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