Étienne Girard
The World Liberty Financial (WLFI) community is rallying behind a proposal that would direct all protocol-owned liquidity (POL) fees into open-market WLFI purchases, followed by permanent token burns.
If approved, this mechanism would operate without interruption. Fees collected from treasury-owned liquidity pools would be swapped for WLFI tokens, which are then sent to a burn address—effectively reducing the circulating supply. In theory, this strengthens the value of each remaining token by boosting its share of protocol revenues.
The plan specifies that every burn would be verifiable on-chain, with potential expansion to other protocol income sources in the future. Importantly, liquidity providers outside of the treasury, such as community or third-party LPs, would not be impacted.
Near-Unanimous Support From Governance Vote
With just one week left in the governance process, voting data shows 99.57% in favor, 0.09% opposed, and 0.34% abstaining, according to the project’s governance portal.
WLFI, the native token of World Liberty Financial, has attracted attention as the Trump family publicly supports the project. The protocol positions itself as a bridge between traditional finance and decentralized markets, featuring a fully reserved USD1 stablecoin and treasury-driven operations. Previous governance initiatives paved the way for WLFI trading and explored buyback strategies connected to broader revenue streams as the project builds out exchanges, payments, and DeFi integrations.
Token Burns Mirror Wider DeFi Trend
The proposed buyback-and-burn program comes on the heels of WLFI’s token debut earlier this month, reinforcing a growing industry trend of reinvesting revenues to strengthen token economics.
DeFi platforms like Hyperliquid, Raydium, Pump.fun, and Solana launchpad have collectively executed nearly $400 million in token buybacks since mid-June, according to PRIME’s analytics dashboard. This marks a clear industry pivot from heavy token emissions to strategic supply reduction.
What’s Next for WLFI?
If passed, World Liberty’s governance proposal would cement a fee-driven burn model across Ethereum, BNB Chain, and Solana. However, despite strong community backing, WLFI’s price has slipped nearly 40% from its post-launch high following its Sept. 1 debut, according to PRIME’s price tracker.
Still, the new initiative could provide a long-term value catalyst for WLFI, aligning it with one of DeFi’s most powerful tokenomics strategies.
