Token Burn and Justin Sun Wallet Ban See WLFI Recover 9%

World Liberty Financial ( WLFI ), the Trump-backed crypto project, saw a 9% rebound after two major developments: a 47 million token burn and the blacklisting the wallet of Justin Sun. These events came just days after WLFI’s public trading launch was met with heavy sell pressure and a steep 31% drop.

Token Burn Strategy Sparks Optimism

On September 2, WLFI permanently removed 47 million tokens, about 0.19% of its circulating supply through a multi-signature burn agreement. The goal was to reduce supply and support price stability following the volatile debut. Currently, around 700 million WLFI tokens are in circulation, with over 24.6 billion unlocked from the original 100 billion total supply.

The burn was approved by a community governance vote, where 133 participants backed the supply-tightening proposal. While official voting procedures are still pending, the team has indicated plans for ongoing buyback and burn programs funded by protocol fees.

Token burns are a common deflationary mechanism in crypto markets. Some academic research shows that supply reductions exceeding 5% annually can drive price appreciation of 15–20% in favorable conditions.

Src: Tokenomist

Justin Sun WLFI Wallet Blacklisted After Exchange Transfer

Separately, on-chain data from Arkham and Nansen revealed that Justin Sun’s wallet was blacklisted by the WLFI project after a 50 million token transfer to exchange HTX, a move worth roughly $9 million. The action immediately triggered speculation that the project was limiting sell-side pressure during the fragile post-launch phase.

Sun later clarified on X that the transfers were routine tests, not intended for sale. He reiterated his long-term commitment to the WLFI ecosystem, stating, “We have no plans to sell our unlocked tokens anytime soon.”

A spokesperson confirmed that Sun and the WLFI team remain in active discussions regarding the situation.

Analyst Insights

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Analysts suggest these events highlight the growing tension between celebrity-led projects and institutional-grade expectations. Kevin Rusher of RAAC commented, “Market maturity hinges more on institutional adoption than hype. Retail investors must be cautious about short-term narratives.”

Despite initial turbulence, the WLFI team appears focused on long-term strategies involving supply control and ecosystem growth.

The Talk

Real voices. Real reactions.

KOLsMediaCommunity

Wow, Justin Sun’s address got blacklisted for selling $WLFI. Juicy 😂 https://t.co/BqBqXbpRw3

Ted

@TedPillows

1 day ago

WTF Just Happened? World Liberty Financial blacklists Justin Sun's entire $500M in $WLFI allocation. https://t.co/ZgZzdo7DXb

Gordon

@AltcoinGordon

1 day ago

Justin Sun is the largest holder of $WLFI. He bought the tokens fairly then after transferring $9M, the team froze his funds because they didn’t like how he was operating. Never before has a DeFi project taken such drastic action. Why would anyone trust this team after that? https://t.co/a5uHwN7Vee

Nick Ford

@itsnickford

1 day ago

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