World Liberty Financial has taken 47 million WLFI tokens out of circulation following the token’s market debut earlier this week. The Trump-backed digital token, introduced into the crypto market with high expectations, quickly stumbled. WLFI opened at $0.331 on Monday and lost more than 31% of its value within days, forcing developers to act. WLFI Executes First Token Burn as Market Struggles On September 3, World Liberty Financial carried out its first major step to support its token by destroying 47 million coins. This process, known as a token burn, permanently reduces supply. However, only a small amount of tokens have been burned; just 0.19% of the 24.66 billion currently in circulation. Out of the 100 billion tokens first created, only one-quarter was released for public trading. This has left room for speculation and sharp price swings. Meanwhile, the token’s price has also been under pressure, partly because of heavy short selling that dragged it down during the week. WLFI teams not only burn tokens but have also proposed a buyback program to boost the token’s market value. WLFI Sparks Network Strain and Market Concerns The first response from the WLFI community has been largely positive. Out of 133 participants in early discussions, most supported the burn and showed interest in more structured strategies. A formal vote is now underway as developers work to gain broader agreement on the project’s tokenomics. The new WLFI token also put pressure on the Ethereum network. This caused transaction fees to rise sharply. At the busiest point, even a simple transfer costs about $50. Mangirdas Ptasinskas from Galxe said this shows how blockchains still struggle to handle large numbers of users. He noted that scalability remains a big challenge for wider adoption. Even with recovery efforts, many analysts are still careful. They doubt whether celebrity-backed tokens like WLFI can last long. Market experts say success in crypto usually depends on institutional support, not just hype. WLFI’s First Burn Raises Questions on Long-Term Value At the time of writing, WLFI trades at $0.2180, down 2.88% in the past 24 hours, according to CoinMarketCap data. Token burns are now common in crypto. They are used to reduce supply, attract investors, and show commitment. This move is not unique to WLFI. Other projects also burn tokens as part of their strategy. Crypto projects like Shiba Inu’s SHIB recently destroyed 537 million SHIB coins in a single day . This boosted its burn rate by more than 3,400%. Similarly, Binance Coin (BNB) also uses burns to keep its market strength. For WLFI, this is only the first step to boost its token value. The big question is whether such efforts can rebuild trust and create lasting value in a competitive market. The post WLFI Burns 47M Tokens After Price Collapse in Debut Week appeared first on TheCoinrise.com .
