The WLFI token supported by Trump is signaling a price rebound, expected to regain momentum after recent fluctuations. Meanwhile, World Liberty Financial has proposed a plan to allocate 100% of its liquidity fees for buyback and burn initiatives.

WLFI rebounds after a significant decline

According to TradingView data, WLFI has increased by 3% in the past 24 hours. The token has rebounded from a monthly decline of 10% and a post-listing drop of 40%.

Previously, WLFI had fallen to a historical low of $0.1614. Currently, the trading price of the token is close to $0.2, but it is still nearly 50% lower than the high of $0.46 in early September.

The price drop is mainly attributed to reports that investors violated the token's 'no-sale' policy. For example, it was reported that Sun Yuchen sold $9 million worth of tokens, after which the team froze his wallet. Over $3 billion in unlocked and locked tokens were affected by this freeze.

This move provided a short-term breather for the token market price and prevented immediate selling pressure. Sun Yuchen responded by committing to purchase $20 million worth of tokens. This sparked further speculation about whether he would continue to participate in the project.

Part of the rebound is also attributed to the token management strategy launched by the project's leadership. Since its launch on September 1, the token has carried high expectations due to its association with Trump and early hype.

World Liberty proposed a buyback and burn plan

The World Liberty Financial team introduced a new proposal aimed at reviving the stagnant price movement of the token. The proposal involves using fees earned from project liquidity to buy tokens on the open market and send them to a burn address.

Once the plan is fully implemented, it will lead to a continuous reduction in the supply of tokens. Essentially, every transaction that incurs a fee will reduce the total number of tokens in circulation.

Governance votes also indicate that the measure has overwhelming support from the community. Currently, over 99% of voters support the proposal. Supporters believe that this strategy will bring long-term growth to token holders and enhance its scarcity.

The project currently has a total of 24.6 billion WLFI tokens, of which 47 million have been burned in the first round of destruction. All burn information will be recorded on-chain and communicated to the community.

After the WLFI token was launched, it successfully landed on Binance, KuCoin, and Bitget. This boosted its liquidity and retail participation. Within days of its launch, the daily trading volume exceeded $580 million. Most of the investment came from Asia and the Middle East, where projects named after Trump tend to attract significant attention.

In other developments within its ecosystem, World Liberty Financial launched its stablecoin USD1, which has gone live on the Solana blockchain. This reinforces the bullish narrative for the token.

The proposed buyback and burn strategy provides new momentum for the token to attempt to reach previous highs.