WLFI Governance Passes Proposal to Allocate 100% of Treasury Liquidity Fees to Token Buyback and Burn
- WLFI starts a token burn program using all treasury fees to reduce supply and support long-term holders.
- The community backs the WLFI burn plan with over 99% approval, aiming to remove millions of tokens daily.
- WLFI price remains weak despite early token burns and faces pressure from slow supply reduction rates.
World Liberty Financial (WLFI), the decentralized finance protocol backed by the Trump family, has launched its token buyback and burn program. The initiative follows a community governance vote where over 99.8% of participants approved the proposal. The platform will now allocate 100% of its treasury liquidity fees to purchasing and burning WLFI tokens.
The WLFI protocol collects a 0.125% fee from daily trading volumes, which reportedly reach $3.5 billion. At this rate, around 4.375 million tokens are removed from circulation each day. With approximately 24.66 billion WLFI tokens in circulation, a 10% reduction would take about 564 days to complete under the current pace.
The WLFI team confirmed that all future buybacks and burns will be publicly disclosed. The goal is to reduce supply and potentially increase the token’s value over time. Recently, World Liberty Financial proposed using all protocol fees to buy back and burn WLFI tokens, thereby reducing supply and rewarding long-term holders.
Ongoing Market Struggles Despite Initial Burn
WLFI’s token has struggled since its launch on September 1. By September 4, the price had fallen by 40%, reaching a record low. Even after burning 47 million tokens on September 3, the decline continued. The token has since lost over 36% of its initial value, based on data from Coingecko.
The recent launch of the burn program has created some optimism among supporters. They believe reducing the token supply could reward long-term holders. However, concerns remain over whether the current burn rate is sufficient to stabilize or increase the token’s price.
Community Proposals Suggest Additional Measures
Some community members have proposed additional measures to improve WLFI’s token economy. One suggestion includes buying back and burning a portion of the presale token supply rather than releasing it to the market. This approach could limit selling pressure and encourage price stability.
Another proposal recommends introducing a cap on presale unlocks tied to fee revenues. A vesting schedule also limits the number of tokens that enter circulation annually. These ideas aim to slow token emissions and support a healthier market structure.
Critics argue that current burn rates are too low and too slow to make a significant impact. Some believe only large-scale burns—exceeding 10 billion tokens—could support a price recovery.
New Product Development in Progress
WLFI is expanding its product offerings. During a recent blockchain event in Seoul, co-founder Zak Folkman revealed plans for a debit card. This card will link the platform’s USD1 stablecoin to its mobile application and integrate with Apple Pay.
The release date remains unconfirmed. However, the company expects the card to increase utility and adoption for WLFI beyond its core decentralized exchange.
