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    WLFI Holders Greenlight Buyback and Burn Following 41% Price Decline

    Ethan CarterBy No Comments2 Mins Read
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    The World Liberty Financial (WLFI) project, associated with the Trump family and centered on decentralized finance (DeFi), is set to initiate a token buyback and burn program this week following a 41% decline in WLFI token value during September.

    On Friday, World Liberty announced that the team will implement the buyback and burn mechanism this week. The project committed to publicly disclose the initiative and share updates on each buyback and burn as they occur.

    Typically, buyback and burn strategies are employed to mitigate selling pressure during price declines. Companies repurchase their tokens in a buyback, while the burn process involves sending tokens to an unusable address, effectively reducing the circulating supply.

    The decision to adopt a buyback and burn strategy for WLFI tokens comes after a notable decline in value in September. As per CoinGecko, WLFI traded at $0.19 on Friday, representing a 41% decrease from its all-time high of $0.33 on September 1.

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    Source: WLFI

    WLFI buyback and burn follows governance vote

    The introduction of a token buyback and burning mechanism for treasury liquidity fees came after a community vote that passed with 99% approval from holders.

    As a result, the WLFI team will collect fees generated from liquidity positions on Ethereum, BNB Chain, and Solana to purchase WLFI tokens on the open market. These tokens will then be sent to a burn address and permanently removed from circulation.

    The WLFI team stated in the proposal that this mechanism will directly decrease supply, with every trade eliminating WLFI from circulation. This is expected to help stabilize the price as the asset becomes more limited.

    Furthermore, the team clarified that only fees from WLFI-controlled liquidity are included in the burning process, noting that community or third-party liquidity pools will not be impacted.

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    Unclear on how many tokens will be burned

    Some speculated that the burning mechanism could eliminate around 4 million WLFI tokens daily, potentially removing nearly 2% of the total supply annually. However, the proposal does not clarify how many tokens the team intends to buy back and burn.

    Cointelegraph reached out to World Liberty Financial for additional details but had not received a response by publication time.