Chiara Bianchi
World Liberty Financial (WLFI), the Donald Trump-backed crypto initiative, has passed a governance proposal aimed at reducing its circulating supply and boosting token value after a disappointing market debut.
On Thursday, WLFI token holders overwhelmingly approved a proposal to direct 100% of the project’s treasury liquidity fees toward token buybacks and burns. The measure, which gained 99.8% approval, permanently removes purchased tokens from circulation and forms the foundation of WLFI’s long-term buyback strategy, according to official data.
The mechanism is designed to shrink supply and strengthen demand, a tactic commonly used across crypto projects to stabilize and increase token value.
“This initiative ensures tokens held by short-term participants are eliminated, effectively increasing the share for committed, long-term investors,” the proposal stated.
Multi-Chain Liquidity Collection
The platform will pool liquidity from Ethereum, BNB Chain, and Solana to fund open-market buybacks. Tokens acquired through this process will be sent to a burn address for permanent removal.
Despite this roadmap, WLFI has yet to disclose projected fee revenue figures, making it difficult to calculate the potential market impact.
Price Struggles Since Launch
WLFI’s governance vote arrives just weeks after its Sept. 1 launch, which saw the token plunge 40% in three days, inflicting heavy losses on whales. Even after burning 47 million tokens on Sept. 3, WLFI’s decline persisted.
At the time of writing, WLFI trades at $0.2223, down more than 28% since launch, according to CoinMarketCap.
Exploring New Revenue Streams
The team confirmed that Thursday’s proposal is just the beginning of its broader buyback initiative. WLFI also plans to develop additional protocol revenue sources to expand the scale of buybacks and token burns.
PRIME reported that WLFI has not yet provided details on these additional revenue streams or the expected size of the first buyback.
Investor Losses and Trump Family Gains
Among those impacted by WLFI’s price drop was Andrew Tate, the former kickboxing champion and polarizing online figure, who realized a $67,000 loss on a WLFI long position via Hyperliquid. His cumulative trading losses are estimated at nearly $700,000.
Despite these setbacks for some investors, the project has proven highly lucrative for the Trump family, whose collective net worth reportedly surged by $1.3 billion in early September. Gains were fueled by WLFI’s launch and the market debut of American Bitcoin (ABTC), a Trump-linked mining venture.
