World Liberty Fi just triggered its emergency protocol, burning a massive 166.667 million WLFI tokens worth approximately $22.14 million. The drastic move came after detecting unauthorized access to one of their addresses.

The protocol's smart contract includes a built-in emergency function that allows the team to neutralize compromised tokens by permanently removing them from circulation. Once the burn was executed, the equivalent value got reallocated through their treasury mechanism.

This type of rapid response showcases how DeFi projects are building safeguards against security breaches. Rather than letting hackers dump stolen tokens on the market, the emergency burn essentially rendered those tokens worthless before any damage could be done.

The WLFI token had been sitting in what appeared to be a compromised wallet address. The team's ability to act quickly likely prevented a much larger market impact. No word yet on how the address got compromised or whether this was an attempted exploit or internal security issue.

For context, $22.14M represents a significant portion of circulating supply getting wiped out in a single transaction. The reallocation process will determine how these tokens get redistributed back into the ecosystem.