Just three days after its launch, WLFI is now trading at around $0.18 – down more than 60% from its all-time high of $0.45. The token, tied to World Liberty Financial and backed by the Trump family, saw strong early interest and heavy trading volumes. However, the initial hype appears to be cooling quickly.
The token fell 21% today alone, with traders reducing exposure and futures markets reflecting a bearish outlook. WLFI’s long/short ratio currently sits below 1.0, and open interest has declined by 4% over the past 24 hours, according to Coinglass.
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Team Responds with Governance Proposal and Buyback Plan
In response to the price decline, the WLFI team published a new governance proposal suggesting that 100% of fees from protocol-owned liquidity be used for token buybacks and burns. If approved, this would mean every WLFI trade contributes to reducing the circulating supply.
The team also addressed questions around unlocked tokens linked to previous deals, clarifying that these tokens are not planned for open market sale and remain under community governance. All future uses of treasury tokens will require on-chain proposals and votes, according to official statements.
Token Burn and Community Reassurances
On September 3, the project burned 47 million WLFI tokens in an effort to stabilize price and reinforce its deflationary stance. Despite this move, the market has continued to trend downward. The team has indicated a longer recap and Q&A update is coming soon.
World Liberty Financial also confirmed the completion of a token transfer to ALTS, noting that the transaction had already been factored into circulating supply figures.
Market Sentiment Turns Bearish
The rapid drop in price has led to mixed reactions among investors. Several large traders, including leveraged futures participants, have incurred significant losses. At the same time, short sellers have seen profits.
Although the project has denied any plans to offload locked tokens, community concerns remain. Some users have pointed to the token’s steep decline and centralized control structure as possible risks.
WLFI’s price remains volatile, and further changes could follow depending on market reaction to governance votes, upcoming proposals, and overall buyer interest.
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