World Liberty Financial Burns 47M WLFI in Deflationary Move
World Liberty Financial executed a WLFI token burn of 47 million tokens—0.19% of supply—on Sept. 1–2, sending them to an irrecoverable address. This deflationary move cut supply to 99.95 billion WLFI but saw the token slip 9% to $0.22, down 55% from its $0.46 launch peak. Trading volume remains low and WLFI trades sideways between $0.21 support and $0.25–$0.26 resistance.
Unlock data shows 24.66 billion WLFI tokens released so far. The team has proposed a protocol-owned liquidity fee–funded buyback-and-burn plan to reward long-term holders and curb short-term selling. While a WLFI token burn often signals bullish tokenomics, the modest scale suggests limited immediate market impact. However, it could support long-term price stability if approved.
Neutral
The 47 million WLFI token burn represents a modest 0.19% supply reduction, which alone has failed to reverse WLFI’s 9% post-burn price drop or restore its launch-peak levels. Low trading volume and a rangebound market between $0.21 support and $0.25–$0.26 resistance underscore trader indecision. Although the proposed buyback-and-burn plan could introduce long-term deflationary pressure and bolster tokenomics, its approval and scale remain uncertain. Thus, the immediate price impact is likely neutral, with potential bullish effects only if the enhanced deflationary measures are executed.