- All fees collected from WLFI’s own liquidity pools on Ethereum, BNB Chain, and Solana will be used to purchase WLFI on open markets and send them to a burn address
- The decision comes after a sharp price decline, since in September alone, WLFI dropped by approximately 41% from its high
- The team promises to be open by showing every single buyback and burn transaction to the public
WLFI, the token for World Liberty Financial (a crypto project backed by the Trump family), has officially approved a plan to buy back its tokens with every dollar fees earned from its liquidity pools. All tokens purchased will be sent to a burn address, permanently removing them from circulation.
That means all fees collected from WLFI liquidity pools on Ethereum, BNB Chain, and Solana. By committing all of those fees to token buybacks, the team is betting that a shrinking supply will help support price levels in a weak market.
Related: WLFI Debuts on Robinhood as Token Burns Shape Price Path
Why WLFI Is Turning to Buybacks Now
The decision comes after a sharp price decline, since in September alone, WLFI dropped by approximately 41% from its high (about $0.33) to around $0.19.
By burning tokens pulled from the open market, it seems that WLFI is attempting to reduce circulating supply, which could help stabilize or support the price if demand remains.
Transparency and Oversight Promised
The team promises to be open by showing every single buyback and burn transaction to the public. However, it is important to note that the program is funded solely by fees from the protocol’s directly controlled liquidity, excluding other sources.
While the community voted overwhelmingly in favor of the plan, with over 99% approval, some skeptics wonder if the project will earn enough in fees to make a real difference, particularly in a slow market.
WLFI Governance Questions Linger
There are many questions and rumors going on about how WLFI is governed, how presale tokens were distributed, and when tokens will be released. The way those are handled will likely affect market dynamics and trust.
Also, earlier this month, Justin Sun (founder of TRON and early WLFI backer) claimed that some of his WLFI tokens were frozen, which sparked controversy.
Exchange Listings and Partnerships Offer Support
That being said, on a more positive note, the WLFI team is using partnerships and new exchange listings to get more people to use the token. For instance, its recent listing on Robinhood should make it easier for many new investors to buy and sell, which could help stabilize its price.
Interestingly, one can say that WLFI is part of a bigger trend since many newer crypto projects are using deflationary tactics, such as permanently removing tokens from circulation, to make their token more attractive and to help maintain its value during volatile periods.
However, while plenty of crypto projects have tried the same idea of buying back and burning tokens to support their price, a lot of them struggled because they didn’t earn as much in fees as they had hoped. Will WLFI share the same fate? We have yet to see.
Related: Could World Liberty Financial’s WLFI Debit Card Revolutionize Crypto Spending?
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Source: https://coinedition.com/wlfi-launches-100-fee-funded-buyback-and-burn-program/
