The Trump family's crypto project World Liberty Financial has initiated the destruction of its namesake token to boost the continuously declining token price since its public offering on Monday.
Lookonchain was the first to disclose on-chain data showing that the platform proactively destroyed 47 million World Liberty Financial (WLFI) tokens on Wednesday, permanently removing them from circulation.
The token was first listed on the secondary market on Monday, allowing early investors to sell their holdings to the public. The price briefly reached a high of $0.331 before continuing to decline. It has dropped 3.8% in the past day, with the current price slightly above 23 cents.
Crypto projects typically destroy tokens to tighten supply, theoretically increasing the value of the remaining tokens.
According to CoinMarketCap, approximately 24.66 billion tokens have been unlocked, accounting for about 25% of WLFI's initial total supply of 100 billion, with this destruction representing 0.19% of WLFI's circulating supply.
Etherscan's transaction records show that these tokens were sent to a black hole address on September 2, and Etherscan now indicates that the total supply of tokens has decreased to about 99.95 billion.
World Liberty proposed on Tuesday to implement token buybacks and destruction through the protocol's own liquidity income to enhance scarcity and price.
The team stated in the proposal that the token destruction would "increase the relative holding ratio of long-term holders" while removing "tokens held by participants not committed to the long-term development of WLFI" from circulation.
Since reaching a peak on its first day of listing, the token price has cumulatively dropped over 31%, with shorts continuing to sell off, prompting the team to respond by destroying tokens.
Among the 133 respondents in the proposal's comment section, most expressed support, but a formal vote has yet to take place.
Kevin Rusher, founder of the real asset lending ecosystem RAAC, stated after the issuance that he believes the popularity of the WLFI token indicates that the crypto industry is still immature.
He pointed out that the true sustainable development of the ecosystem will rely on institutional adoption rather than "celebrity tokens or short-term hype."
Rusher added, "But the problem is that this apparent speculative trading continues to undermine trust in the crypto industry, which is contrary to the goal of building a truly resilient, long-term financial system."
Meanwhile, Mangirdas Ptašinskas, market and community lead at the Web3 identity and rewards platform Galxe, stated that the token issuance has "pushed Ethereum (ETH) Gas fees to a peak," and he believes this should remind builders that "our work is far from done."
He said, "If a peak transaction can drive the fee for a $200 transfer up to $50, then the crypto ecosystem still needs further improvement to achieve mainstream adoption."
Related: Bitmine currently holds 1.86 million ETH, accounting for about 1.55% of the total Ethereum supply.
Original article: “World Liberty destroys 47 million tokens in an attempt to support the market, yet the decline continues”
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