Can WLFI Price Experience a Rally with Full Allocation of Treasury Liquidity Fees to Buybacks and Burns?

The World Liberty project has introduced a governance strategy aimed at enhancing the long-term growth of its token and increasing the WLFI price.

Key Takeaways

WLFI has dropped 57% from its all-time high of $0.46, currently trading at $0.19.
A new governance proposal has been passed to allocate all treasury liquidity fees toward buybacks and burns.
The implementation of this strategy is expected to start this week.
Technical indicators suggest that WLFI is facing significant bearish pressure.
Whether this new strategy can effectively reverse the token's price decline is still uncertain.

Chart showing WLFI token price decline despite news of incoming token buybacks and burns.

Despite facing a significant decline, the World Liberty Financial (WLFI) token could potentially benefit from a new governance decision that allocates 100% of treasury liquidity fees to buybacks and burns, aimed at reducing the circulating supply. As the token continues to grapple with bearish market pressures, the impact of this decision on WLFI's price trajectory remains uncertain.

Current Price Decline of WLFI

Over the past week, the price of the World Liberty Financial (WLFI) token has experienced a steep decline, falling 57% from its peak of $0.46. It is now trading at $0.19, recording an approximate 4% loss today and around 14% over the week.

However, a recent governance announcement may alter WLFI's fortune. On September 25, the project’s community voted in favor of a proposal to allocate 100% of the Treasury Liquidity Fees toward buybacks and burns. This strategy aims to decrease the token's circulating supply and received unanimous support from the community.

🦅 Governance Update:

The community has voted to use 100% of WLFI Treasury Liquidity Fees for Buybacks & Burns, passing with almost unanimous support.

The implementation of this initiative will commence this week, with all buybacks and burns transparently documented.
— WLFI (@worldlibertyfi) September 25, 2025

The project's team has assured transparency in reporting each buyback and token burn performed. Given that WLFI has a supply of 24.6 billion tokens, it may take some time to create significant deflationary pressure in the market.

WLFI Price Struggles Despite Positive News

Even with the announcement, WLFI remains under bearish pressure. The token struggled to maintain its price above the $0.25 range earlier in the week, entering a downtrend since then.

Chart showing WLFI token price decline despite news of incoming token buybacks and burns. WLFI price chart | Source: crypto.news

Technical analysis suggests that bearish momentum is still present, as indicated by the Relative Strength Index (RSI) at 40.23. WLFI is currently hovering around the $0.19 support level. If this level fails to hold, the next support destination is near $0.18. Conversely, any upward movement could face strong selling pressure between the $0.21 and $0.22 ranges.

Although the strategy of allocating treasury liquidity fees entirely to buybacks and burns is seen as a positive move theoretically, it remains uncertain if it will successfully reverse the ongoing WLFI price decline or merely slow it down.