TLDR
- World Liberty Financial has proposed using liquidity fees for a buyback and burn strategy to reduce token supply.
- The plan applies to liquidity pools on Ethereum, BNB Chain, and Solana directly controlled by WLFI.
- WLFI aims to restore investor confidence by permanently reducing the circulating supply of tokens.
- The proposal has received strong community support with 99% approval as of September 12.
- WLFI’s token experienced significant price volatility after its launch, dropping from $0.46 to $0.21.
World Liberty Financial (WLFI) has proposed directing all fees from its protocol-owned liquidity toward open-market buybacks and permanent token burns. The plan, introduced on September 12, aims to restore investor confidence following a volatile token launch. The proposal applies to liquidity pools on Ethereum (ETH), BNB Chain (BNB), and Solana (SOL), controlled by WLFI. This proposal will not impact liquidity pools provided by third parties or the community. WLFI is seeking community approval, with voting scheduled to conclude on September 18.
WLFI Will Use Liquidity Fees for Buyback and Burn
WLFI has outlined plans to use the fees generated from liquidity pools under its control for a buyback and burn strategy. The proposal seeks to reduce the circulating supply of WLFI tokens with each trade. Tokens purchased through this process will be sent to a burn address, and they will be permanently removed from circulation.
The move aims to align WLFI’s token value with protocol usage. By decreasing supply, the project expects to increase the value for long-term holders. All transactions will be transparently recorded on-chain, allowing the community to track progress and ensure accountability.
In considering alternatives, the team evaluated keeping the fees in the treasury or splitting proceeds between operations and burns. Ultimately, feedback from the community led to the decision to commit to a burn strategy fully. “The full burn strategy appeared as the clearest way to restore momentum,” said the WLFI team.
WLFI Burns 47 Million Tokens to Stabilize Price
WLFI’s token faced a rough launch, seeing its price drop from a high of $0.46 to $0.21 within days. The early volatility followed concerns about the large stake held by the Trump family, which reportedly boosted their net worth by $5 billion. Critics argued that the launch benefited insiders, leaving retail traders exposed to price fluctuations.
To stabilize sentiment, WLFI burned 47 million tokens, about 0.19% of the total supply, on September 2. Despite this effort, the price failed to rebound and remained near $0.201. The new buyback-and-burn proposal is seen as an attempt to refocus the token’s value on actual protocol activity rather than speculative hype.
