Trump Family-Backed World Liberty Unveils WLFI Token Buyback and Burn Program

World Liberty Financial, backed by the Trump family, has proposed a significant buyback and burn initiative for its WLFI token. This announcement comes just a day after a disappointing launch that saw WLFI's price decline by over 30%. The team believes this strategy will not only stabilize the token’s value but also benefit long-term holders by increasing their stake in the network.

Key Takeaways

World Liberty Financial plans a buyback and burn program for its WLFI token to enhance its value.
The initiative involves using protocol fees to purchase WLFI tokens, which will then be burned to reduce supply.
Only fees from WLFI-owned liquidity pools will be used for this program, preserving community and third-party liquidity.
The proposal aims to create a mechanism that supports price stability and rewards long-term holders.
Concerns about the proposal include uncertainty in fee volume and potential centralization of token ownership.

Trump family-backed World Liberty announces WLFI burn program

Main Content

World Liberty Financial, a project backed by the Trump family, has revealed a major buyback and burn initiative aimed at boosting the value of its WLFI token. This strategy comes just a day after a turbulent launch that resulted in a price drop of over 30% from its initial high.

Following its debut on Labor Day, the World Liberty team proposed to utilize fees generated by their protocol to buy back parts of WLFI’s circulating supply. They believe this would not only decrease supply but also reward those who hold WLFI longer by increasing their proportional value within the network.

If the proposal garners approval, it will permit the project to allocate 100% of fees generated from its protocol-owned liquidity (POL) for open-market purchases of WLFI tokens. Once procured, these tokens will be transferred to an official burn address, effectively removing them from circulation.

The buyback will rely solely on fees derived from WLFI-controlled liquidity pools across Ethereum, BNB Chain, and Solana, leaving community and third-party liquidity sources unaffected. The developers aim to create a feedback loop that stabilizes prices and gradually enhances the value of tokens held by long-term participants.

According to the proposal, “This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction.” It further explained, “More usage = more fees = more WLFI burned.”

All burn activities will be documented on-chain and shared with the community to ensure transparency. The proposal indicates that, based on community preferences, they plan to maximize impact by burning 100% of WLFI POL fees. Other alternatives, such as dividing fees for both treasury usage and burns or retaining POL fees in the project’s treasury for future developments, were also explored but ultimately discarded in favor of a more impactful approach.

WLFI developers express that, if endorsed, this buyback-and-burn initiative could lay the groundwork for a continuous strategy and explore additional revenue streams beyond just POL fees in the future.

While a significant segment of the WLFI community supports the token burn mechanism, some concerns persist. One key issue is the uncertainty surrounding the volume of fees being generated by the protocol, which complicates understanding the short-term effects of the burns.

Additionally, criticisms have been voiced regarding the absence of a backup plan should the project’s treasury need urgent funding, given that all POL fee income would be committed to the burn initiative.

One community member expressed caution, suggesting that the proposal could inadvertently consolidate too much control in the hands of a few large holders. "This won't work because it will create whales from the burns, and eventually some holders' positions will be so enormous that nobody will want to buy the coin for fear of being dumped on," they noted.

As for WLFI’s market performance, the burn proposal hasn't substantially lifted its price. WLFI fell to a low of $0.2106, approximately 30.3% below its highest point of $0.3313 on September 1. WLFI briefly surged over 18% to $0.2497 following the program announcement but settled back to around $0.2312 by the time of this report.

World Liberty Financial