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World Liberty Financial Proposes Buyback Program: WLFI Declines After Launch

wlfi

The World Liberty Financial (WLFI) team has proposed a new buyback and burn program aimed at strengthening the token’s long-term stability. However, the token’s price action following its launch has raised questions within the community.

Buyback and Burn Program Proposal

The team suggested that all fees generated from protocol-owned liquidity be used to repurchase WLFI tokens and permanently remove them from circulation. The plan seeks to reduce the share of tokens held by short-term investors, thereby increasing the relative stake of long-term holders.

Fees collected from protocol-owned liquidity positions on Ethereum, Binance Smart Chain, and Solana will be used to buy WLFI on the open market and then sent to a burn address.

Scope and Transparency of the Program

Fees obtained from the community or third-party liquidity providers will not be included in the program. All burn transactions will occur fully on-chain and be shared with the community for transparency. Increased protocol usage would lead to higher fees collected, resulting in more tokens being burned.

Community members will be able to vote on three options:

  • Direct all liquidity fees to the buyback and burn program
  • Oppose the plan and retain fees in the treasury
  • Abstain from voting

If approved, the program is expected to expand to include additional protocol revenues in the future.

WLFI Launch and Market Reaction

The WLFI token began trading on major crypto exchanges on Monday. Launched at $0.32, the token quickly lost 34% of its value, falling to $0.25.

As of 12:30 PM on Tuesday, WLFI was trading at $0.23. According to CoinGecko data, trading volume for WLFI on major exchanges such as Binance, Coinbase, and Upbit exceeded $2.5 billion. Out of a total supply of 100 billion, approximately 27.35 billion WLFI are currently in circulation.

World Liberty Financial and the USD1 Stablecoin

Founded in 2024 with the support of U.S. President Donald Trump and his family, World Liberty Financial has quickly become a key player in the DeFi and crypto ecosystem. The company has also launched USD1, which, with a market capitalization of $2.6 billion, is currently the sixth-largest stablecoin.

World Liberty Financial’s proposed buyback and burn program aims to strengthen the position of long-term WLFI holders. However, the post-launch price decline appears to have raised concerns among short-term investors. The outcome of the community vote will directly impact WLFI’s future direction and overall market confidence.

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