Key Notes
- A governance vote is underway for a WLFI token buyback and burn program.
- The plan would use 100% of protocol-owned liquidity fees to buy and burn tokens.
- The proposal has over 99% community support before the Sept.18 deadline.
World Liberty Financial, a decentralized finance (DeFi) project with public ties to the Trump family, is holding a governance vote on a new tokenomics proposal.
The plan involves establishing a buyback-and-burn program for its native token to reduce its circulating supply.
The proposal suggests using 100% of the fees generated from the project’s protocol-owned liquidity to purchase its tokens from the open market.
These tokens would be permanently destroyed by sending them to a burn address, a standard method to tighten a token’s supply.
This initiative follows the launch of the WLFI token on Ethereum[NC] at the beginning of the month.
The project, which aims to connect traditional finance with on-chain markets, also features a USD-pegged stablecoin called USD1. The token is trading nearly 40% below its all-time high, which was recorded shortly after its Sept. 1 launch.
How the Buyback Program Works
The process is designed to be continuous and transparent, with all burn transactions recorded on-chain for the community to verify. Fees collected from WLFI’s treasury-owned liquidity positions on networks like Ethereum, BNB Chain
BNB
$907.1
24h volatility:
1.1%
Market cap:
$126.32 B
Vol. 24h:
$1.24 B
, and Solana
SOL
$239.0
24h volatility:
5.6%
Market cap:
$129.59 B
Vol. 24h:
$12.79 B
would be systematically used to repurchase WLFI tokens.
This mechanism makes sure that fees from community or third-party liquidity providers are not affected.
According to the official proposal, the primary goal is to directly reduce the token supply and better align the protocol with its long-term holders by removing tokens from participants not committed to the project’s growth.
The buyback-and-burn model creates a direct link between platform activity and the WLFI token price, as more usage generates more fees, resulting in more tokens being burned.
The strategy reflects a broader trend in the DeFi market where protocols use cash flows for supply reduction rather than purely for emissions. Various protocols like Hyperliquid
HYPE
$55.79
24h volatility:
2.6%
Market cap:
$15.13 B
Vol. 24h:
$791.07 M
, pump.fun, and Raydium
RAY
$3.66
24h volatility:
5.0%
Market cap:
$980.28 M
Vol. 24h:
$118.36 M
have spent nearly $400 million on cumulative buybacks since mid-June.
The WLFI governance vote currently has overwhelming support, with over 99% of participants in favor, and is scheduled to end on Sept. 18.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
As a Web3 marketing strategist and former CMO of DuckDAO, Zoran Spirkovski translates complex crypto concepts into compelling narratives that drive growth. With a background in crypto journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
