Plan Mechanics and Scope
World Liberty Financial (WLFI) is moving forward with a buyback-and-burn program in direct response to its token’s significant price decline of over 40% since its debut on September 1, 2025. The initiative received near-unanimous support, with 99.8% of the community voting in favor.
The mechanism is straightforward: 100% of the fees generated from the protocol’s own liquidity pools on Ethereum, BNB Chain, and Solana will be used to purchase WLFI tokens from the open market. These repurchased tokens will then be sent to a public burn address, permanently removing them from circulation. The project has committed to transparently posting every transaction for community verification.
This strategy aims to create upward price pressure by systematically reducing the circulating supply, rewarding long-term holders by increasing the relative scarcity of the token. The team has described the plan as a foundational element of its tokenomics, intended to favor committed investors over short-term speculators.
Market Impact, Risks and Key Facts
The potential success of this deflationary strategy is a subject of debate, carrying clear potential benefits and significant risks.
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Projected Impact and Scale: Some analysts suggest the program could lead to a price recovery of 25% or more if it successfully restores market confidence. Based on an estimated 0.125% fee from daily trading volume, the protocol could potentially burn millions of tokens each day. However, the actual effect is uncertain and depends heavily on the consistency of fee generation and the depth of market liquidity.
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Inherent Risks and Challenges: A major concern is that allocating all treasury fees to buybacks may divert crucial resources away from product development, security audits, and ecosystem growth, potentially stifling the project’s long-term utility and adoption. Furthermore, the token’s association with the Trump family continues to draw regulatory and ethical scrutiny, adding a layer of external risk. The effectiveness of such a supply-reduction measure is also questionable if underlying demand for the token’s utility does not increase.
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Context of Previous Action: This is not the project’s first attempt to stabilize the price through supply reduction. An earlier, one-off burn of 47 million tokens failed to halt the downward trend, highlighting the challenge of countering strong selling pressure and low market confidence.
In summary, the buyback-and-burn plan is a tactical response to a troubled launch. Its long-term effectiveness will hinge not only on the scale of the repurchases but, more importantly, on the project’s ability to restore fundamental confidence through transparent operations, robust product development, and clear governance.
