The World Liberty Financial project, associated with the Trump family, has introduced a new proposal for a token buyback and burn program aimed at reducing the circulating supply of WLFI tokens by utilizing protocol fees.
Proposed Token Buyback Program
World Liberty Financial has proposed using 100% of protocol fees generated from the liquidity positions on Ethereum, BNB Chain, and Solana to buy back WLFI tokens from the market. These tokens will be burnt, leading to a reduction in circulation and an increase in the ownership percentage of committed long-term holders.
> "This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction, effectively increasing relative weight for committed long-term holders."
Community Responses
The majority of respondents in the comments section expressed approval of the initiative. WLFI collects trading fees and uses these funds to purchase tokens from short-term sellers on the open market. The purchased tokens are sent to a burn address, thereby removing them from circulation.
"The proposal favors going all-in on burning, instead of splitting between treasury operations and burn," commented WLFI ambassador Tespmoore.
WLFI Market Status
WLFI prices have significantly dropped following the launch as short sellers offloaded the token. WLFI fell around 36% from a peak of $0.331 to a low of $0.210 but has slightly recovered to trade at $0.229. This price drop coincides with market sentiment, which currently values WLFI’s market capitalization at $6.6 billion with a circulating supply of 27.3 billion out of 100 billion.
The proposed token buyback and burn program for WLFI is a step towards improving conditions for long-term holders. While the proposal has received positive feedback, the market remains unstable.
