Emre Yumlu 
The crypto project World Liberty Financial (WLFI), backed by U.S. President Donald Trump, has approved a new governance proposal aimed at reducing token supply and boosting long-term value. Since its launch, WLFI’s price performance has fallen short of expectations, making this initiative a crucial first step in balancing supply and stimulating demand.
Governance Vote Passes with Overwhelming Support
In a vote held last Thursday, the community approved a proposal to allocate 100% of the platform’s liquidity fees from its treasury to buy back and burn WLFI tokens. The decision passed with a striking 99.8% majority, while only 0.06% of participants voted against it.
Under the plan, liquidity positions across Ethereum, BNB Chain, and Solana will be consolidated and used to purchase WLFI tokens from the open market. These tokens will then be permanently removed from circulation through designated burn addresses.
Reducing Supply, Rewarding Long-Term Holders
According to the proposal, the program is designed to eliminate tokens held by participants not committed to WLFI’s long-term growth. By shrinking circulating supply, the strategy effectively increases the relative share of loyal long-term holders.
Uncertainty Around Market Impact
Although the buyback plan has been approved, the platform has not disclosed estimates regarding the total fees expected to be generated. As a result, the exact market impact of these buybacks remains uncertain for now.
Post-Launch Challenges
WLFI officially launched on September 1, 2025, but within the first three days its price plummeted by 40%, resulting in significant losses for investors. On September 3, the platform announced the burn of 47 million WLFI tokens, though the move failed to stop the early downward trend.
Exploring Additional Revenue Streams
The buyback and burn mechanism marks the foundation of WLFI’s long-term tokenomics strategy. In addition, the project team has announced plans to explore new protocol revenue sources in order to expand the scope and frequency of buybacks.
Impact on the Trump Family
Despite WLFI’s rocky market debut, the venture has been financially rewarding for the Trump family. Reports indicate that in the week of September 7, the family’s wealth grew by approximately $1.3 billion, driven by both the WLFI platform and the market debut of American Bitcoin (ABTC).
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