World Liberty Financial (WLFI), a DeFi project linked to the Trump family, has proposed allocating 100% of its protocol-owned liquidity (POL) fees to the buyback and permanent burning of WLFI tokens.
As per the official announcement, the idea is to use 100% of the fees generated from WLFI’s liquidity positions on Ethereum, Binance Smart Chain, and Solana to purchase back WLFI tokens on the open market.
These tokens would then be sent to a burn address, permanently removing them from circulation. The initiative excludes fees from community or third-party liquidity providers. The goal is to reduce the circulating supply, thereby increasing the relative ownership stakes of long-term holders and aligning token scarcity with platform usage.
Token Launch
World Liberty Financial launched its native token, WLFI, on September 1 at $0.20 per token. The token is listed on leading crypto exchanges such as Binance, Kraken, and Upbit, as well as decentralized exchanges like Uniswap, Raydium, and Pancakeswap.
Within hours, the token swiftly became one of the industry’s most popular coins, with a market capitalization of $5.38 billion and a ranking among the top 27 cryptocurrencies. At the time of writing, it was trading at $0.2431, up nearly 7% in the past 24 hours, according to CoinMarketCap.
Rationale and Community Feedback
The proposal is made due to a dramatic price swing of WLFI after its release. The price of the token dropped by 30% from its all-time high, which triggered alarm among investors. With the decrease in the supply of the token by burning, the project seeks to increase investor confidence and stabilize the token price.
WLFI looked at other options, including keeping fees in the Treasury or dividing fees between Treasury and burning. Its team reviewed community input and thinks that the majority of supporters would prefer maximum impact by burning 100% of POL fees.
The proposal is now available to the community for voting, with the ability to vote in favor, against, or abstain. Upon approval, it will form the basis of a continuous buyback and burn program with the possibility of adding more sources of protocol revenue as the network evolves.
Also Read: Justin Sun Claims $200M WLFI Tokens, Says ‘No Plans to Sell’
