The criptographic project of the Trump family, World Liberty Financial, has begun to burn its homonymous token in an attempt to increase its price, which has been in decline since it was launched to the public on Monday.
Ochain data reported for the first time by Lookonchain showed that the platform burned 47 million tokens World Liberty Financial (WLFI) on Wednesday, permanently eliminating them from the supply.
The Token began operating in secondary markets for the first time on Monday, with its first investors allowed to sell their participations to the public. The Token briefly reached a peak of $ 0.331, but has continued to decrease, falling 3.8% in the last day by just over 23 cents.
Cryptographic projects carry out tokens burns in an attempt to tighten the supply and theoretically increase the value of the remaining tokens.
Burn a WLFI supply fraction
Coinmarketcap shows about 24.66 billion tokens, or just over 25% of the original supply of 100 billion WLFI, so far they have been unlocked, and the burn represents 0.19% of the circulating supply of the Token.
The transaction in Eserscan shows that the tokens were sent to a burning wallet on September 2, and Etherscan now shows that the total supply of the tokens has been reduced by just over 99.95 billion.
World Liberty presented a proposal on Tuesday to implement a repurchase program and token burns using liquidity rates owned by a protocol in an effort to increase scarcity and price.
The team states in the proposal that a tokens burning “would increase the percentage of relative property of the long -term holders committed”, while eliminating from the circulation tokens “in the hands of the participants not committed to the long -term growth of WLFI”.
The Token has dropped more than 31% since its maximum opening on its launch day, since short vendors downloaded the token, a problem that Token Burn aims to address.
The majority of the 133 respondents in the comments section under the proposal have expressed approval, with an official vote that has not occurred.
Token launch shows that the market needs time to mature
Kevin Rusher, founder of RAAC of the loan and loans of the real world, said in a statement after launch, believes that the exaggeration around Token Wlfi shows that Crypto is still struggling to grow.
He argues that the true longevity in the ecosystem will be determined by institutional adoption, not “celebrity tokens or short -term exaggeration.”
Related: The participation of Trump family freedom increases to $ 5B after tokens unlock
“However, the concern is that such a blatant speculative trade continues to damage confidence in cryptography, and that is the opposite of what is required to build a truly resistant long -term financial system,” Rusher added.
Meanwhile, Mangirles PtaĆĄinskas, Marketing and Community Chief on the identity platform and web3 Galxe rewards, said that the launch of Tokens sent Ethereum gas rates “to the stratosphere”, which he believes that it should be a warning to the builders that “our work is still far from doing.”
“If an increase in trade can suddenly exceed rates in a transfer of $ 200 to $ 50, work is still required to prepare the cryptographic ecosystem for conventional adoption that comes without a doubt,” he said.
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