Trump family-backed World Liberty Financial has proposed a major token buyback and burn program designed to enhance token value just a day after a shaky launch that saw WLFI price tank over 30% from its launch day high.
Summary
- Trump family linked World Liberty Financial has proposed using all protocol fees to buyback and burn WLFI tokens.
- WLFI price briefly rallied after the announcement, but remains over 30% below its all-time high.
A day after its Labor Day debut, the World Liberty team has proposed using fees generated by the protocol to buyback portions of WLFI’s circulating supply, which the team believes would not only tighten supply but also reward long-term holders by increasing their relative share of the network’s value.
If the proposal is passed, it would allow the project to redirect 100% of fees earned from its protocol-owned liquidity (POL) toward open-market WLFI purchases.
Once acquired, the tokens would be redirected to the official burn address, effectively taking them out of circulation.
Only fees generated by WLFI-controlled liquidity pools across Ethereum, BNB Chain, and Solana would be used to buyback tokens, and Liquidity provided by the community or third-party partners remains untouched by the plan.
As evident by the proposal, developers expect to create a feedback loop that could support price stability and gradually raise the value of tokens held by long-term participants.
“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction,” an excerpt from the proposal noted.
“More usage = more fees = more WLFI burned,” it added.
All burn events will be recorded on-chain and reported to the community, maintaining transparency in execution.
“We believe the community preference is to maximize impact and burn 100% of WLFI POL fees,” the proposal noted.
Other configurations, including splitting fees between treasury operations and token burns, or simply retaining all POL fees in the project’s treasury for future development, were also considered.
However, the final version dismissed these softer approaches in favor of maximum impact.
WLFI developers have outlined that the proposal, if passed, may lay the foundation for an “ongoing buyback-and-burn strategy,” and future plans include exploring more revenue streams beyond POL fees.
WLFI proposal gets mixed reaction
Although a notable portion of the WLFI community was in favor of the token burning mechanism as of press time, some concerns remain.
One lingering issue is uncertainty around fee volume, as the proposal does not specify exactly how much protocol revenue is currently generated, making it difficult to gauge the short-term impact of the burns.
Another point raised by some observers is the lack of contingency planning in case the project’s treasury requires emergency funding later down the line, having already committed all POL fee income to the burn program.
One community member was concerned that the proposal might backfire by potentially concentrating too much power in the hands of a few holders. See below.
WLFI price faces selling pressure
The burn proposal did little to lift WLFI prices, which had dropped to an intraday low of $0.2106, which is roughly 30.3% below its Sep. 1 high of $0.3313.
WLFI (WLFI) briefly rallied over 18% to $0.2497 following the announcement, before slipping back to about $0.2312 by press time.
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