World Liberty Financial (WLFI), a decentralized finance (DeFi) project associated with the Trump family, has announced a comprehensive token buyback and burn program set to begin next week. This decision comes after WLFI tokens experienced a significant 41% decline in value during September, dropping from an all-time high of $0.33 on September 1 to approximately $0.19 as of Friday.
The initiative follows a community governance vote that passed with 99% approval, demonstrating near-unanimous support from token holders. Under the plan, 100% of the treasury liquidity fees generated from WLFI's liquidity positions on Ethereum, BNB Chain, and Solana will be used to repurchase WLFI tokens on the open market. These tokens will then be permanently burned by sending them to an unusable address, effectively reducing the circulating supply.
The WLFI team has committed to transparently disclosing updates on each buyback and burn event, although the exact number of tokens to be removed daily remains unclear. Some analysts speculate that around 4 million WLFI tokens could be burned per day, potentially eliminating nearly 2% of the total supply annually. The project emphasizes that this mechanism aims to stabilize prices by increasing scarcity, aligning with growth—as higher trading volumes would lead to more fees and thus more burns. However, only fees from WLFI-controlled liquidity are included, excluding community or third-party pools.
Despite the optimistic outlook, uncertainties persist, with comparisons drawn to successful models like Binance's BNB burns and cautionary tales such as Terra's pre-collapse strategies. World Liberty Financial did not respond to requests for additional details by the time of publication.