WLFI Token Plummets 58% – Buyback Initiative to Stop the Decline

World Liberty Financial (WLFI), a DeFi project linked to Donald Trump, is trying to address a significant drop in its token value, which has fallen by over 50% in September.

Key Takeaways

WLFI’s token has dropped over 50% in September, prompting a buyback-and-burn initiative.
The community overwhelmingly supports the buyback plan designed to stabilize WLFI’s value.
WLFI aims to create a feedback loop between increased token scarcity and platform growth through its buyback program.
The ongoing trend of buyback strategies extends beyond DeFi, affecting listed companies managing crypto assets.

WLFI Token Plummets 58% – Buyback Initiative to Stop the Decline

In response, the project announced a comprehensive buyback-and-burn strategy on Friday, utilizing treasury liquidity fees to counterbalance selling pressure. A governance update shared on X indicates that the community overwhelmingly backed the initiative, with WLFI committed to full transparency regarding the burning of tokens.

🦅 Governance Update:

The community has approved the use of 100% of WLFI Treasury Liquidity Fees for Buyback & Burn, receiving almost unanimous support.

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

The urgency of this action highlights WLFI's significant losses in recent weeks. The token was trading at $0.19 as of Friday, down from a peak of $0.46 on September 1—a decline of 58% in less than a month. Over the past week, losses amount to 12.85%, and for the month, the decline stands at 15.45%.

This isn’t the first attempt by WLFI to stabilize its price. A few days after launch, the project burned 47 million tokens on September 3 to counter a 31% sell-off, sending the tokens to a dedicated burn address.

For WLFI, the buyback-and-burn program serves as both a damage-control tactic and a way to test community loyalty. While adjustments to tokenomics can provide temporary relief, it remains essential for the project to demonstrate that WLFI has the capability to sustain its value beyond short-term interventions.

WLFI Unveils Buyback-and-Burn Plan to Enhance Token Scarcity

According to the governance proposal, WLFI plans to utilize fees from its protocol-owned liquidity (POL) pools on Ethereum, BNB Chain, and Solana to repurchase tokens available in the open market. Once repurchased, these tokens will be sent to a burn address, effectively removing them from circulation for good.

WLFI Proposal Source: WLFI

The initiative highlights a direct link between supply reduction and platform growth. As trading activity increases, more liquidity fees are generated, enabling more significant buybacks and burns. This aims to create a cycle wherein increased adoption leads to scarcity, further enhancing token value.

Importantly, this buyback-and-burn strategy will only affect WLFI’s protocol-controlled liquidity pools, ensuring that community and third-party liquidity pools remain unaffected, thus preserving contributions from the broader ecosystem.

In its proposal, the WLFI team believes that this approach aligns the interests of long-term holders with the project’s growth by systematically reducing supply and deterring short-term speculation. Every burn process increases the relative stake of committed investors, which reinforces confidence in WLFI’s tokenomics.

To enhance accountability, WLFI has committed to complete transparency: every buyback and burn will be verifiable on-chain and reported to the community in real-time.

WLFI Joins the Buyback Trend Widening in the Crypto Space

WLFI’s comprehensive buyback-and-burn approach positions it among the more ambitious tokenomic strategies in cryptocurrency. This decision comes as a response to its significant price plummet in September but also reflects a broader trend among DeFi protocols employing revenue streams for supply reduction, aligning incentives, and improving token value.

Hyperliquid is one such example. Almost all of its platform fees are allocated to automated buybacks of $HYPE tokens, helping to sustain demand. By mid-2025, more than 20 million tokens had been repurchased, with almost 30 million in reserve by Q3, valued at over $1.5 billion. This consistency fortifies scarcity and enhances Hyperliquid’s standing in decentralized derivatives.

Other protocols have adopted variations of this strategy: Jupiter designates half of its fees to $JUP buybacks, locking those tokens for three years, while Raydium allocates 12% of fees for $RAY buybacks, having already removed 71 million tokens, which is about a quarter of its circulating supply.

Burn-based models extend this concept even further, as seen with Sky, which has invested $75 million since February 2025 to permanently eliminate $SKY tokens, increasing scarcity and governance influence.

🛒 Crypto treasury firms are launching debt-funded share buybacks as their stock prices tumble.#Crypto #Treasury https://t.co/lkTnaviTPV — Cryptonews.com (@cryptonews) September 23, 2025

However, the buyback trend is not exclusive to DeFi. More listed companies with crypto holdings are initiating aggressive repurchase programs, often to offset losses from declining digital assets.

A report indicates that at least seven firms across gaming and biotech sectors have turned to buybacks—typically funded by debt—to support dwindling stock prices. One recent example is Thumzup Media, a digital advertising company expanding its Web3 presence, which recently announced a $10 million share repurchase plan, following a $1 million initiative that saw 212,432 shares purchased at an average price of $4.71.

✅ DeFi Development (@defidevcorp) has expanded its stock buyback program to $100 million, now holding over 2 million $SOL tokens.#DeFi #Solana https://t.co/G6CGnoAK7p — Cryptonews.com (@cryptonews) September 24, 2025

DeFi Development Corp, the first public company focusing on a Solana-based treasury strategy, has also amplified its buyback program from $1 million to $100 million, establishing one of the largest stock repurchase efforts in the digital asset space.

These instances illustrate how the buyback mechanism, whether in tokenomics or traditional equities, is becoming a vital method for stabilizing asset value and conveying confidence, despite the varying motivations and implementations.