Chiara Bianchi
The World Liberty Financial (WLFI) team has introduced a new proposal aiming to direct all fees from its protocol-owned liquidity toward buying back and permanently burning WLFI tokens.
According to the proposal, this mechanism would remove tokens from circulation, particularly those held by short-term participants, thereby boosting the relative share of long-term holders committed to WLFI’s growth.
Under the plan, fees generated from WLFI’s liquidity positions on Ethereum, Binance Smart Chain, and Solana would be used to purchase WLFI tokens directly from the market. The acquired tokens would then be sent to a burn address, permanently eliminating them from supply.
However, it’s important to note that fees from community and third-party liquidity providers are excluded from this initiative.
The team explained that higher usage of the WLFI protocol naturally leads to more fees, resulting in a larger amount of WLFI burned over time. For full transparency, all burn transactions would be publicly recorded on-chain and regularly reported to the community.
Community Voting Options
Holders can vote on three potential outcomes:
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Support the buyback-and-burn program for all protocol-owned liquidity fees.
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Reject the proposal and keep fees in the treasury.
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Abstain from choosing a side.
If the proposal passes, WLFI has hinted at expanding the initiative to include additional revenue streams as the ecosystem scales. While voting and implementation details have not yet been finalized, early community feedback appears largely supportive.
WLFI Token Launch and Market Performance
The proposal comes shortly after the WLFI token launch on major exchanges. WLFI debuted at $0.32, but quickly dropped by 34% to a low of $0.21 before stabilizing around $0.23 as of Tuesday morning.
Despite the price pullback, trading activity has been massive. CoinGecko reports over $2.5 billion in WLFI volume since launch, with 27.35 billion tokens in circulation out of a maximum supply of 100 billion.
Interestingly, early presale investors are still sitting on significant profits, having purchased WLFI at just $0.015 per token. Data from Bubblemaps shows that Tron Founder Justin Sun remains among the largest holders, with gains still up nearly 10x since launch.
The Bigger Picture: WLFI’s Backing and Ecosystem
Founded in 2024, World Liberty Financial has quickly gained traction in the DeFi sector. The project is publicly supported by former U.S. President Donald Trump and his family, adding a unique political spotlight to its growth.
In addition to WLFI, the company launched its own stablecoin USD1, which already ranks as the sixth-largest stablecoin globally, boasting a market capitalization of $2.6 billion.
