- World Liberty Financial passes governance proposal with 99.8% community support
- Platform will use all treasury liquidity fees for WLFI token buybacks and burns
- Token remains down 28% from launch despite previous burning of 47 million tokens
World Liberty Financial has passed a governance proposal directing 100% of treasury liquidity fees toward token buybacks and permanent burns following disappointing price performance since its September launch.
The Trump family-backed cryptocurrency project secured overwhelming community approval with 99.8% voting in favor while only 0.06% opposed the measure.
The approved mechanism aims to reduce circulating supply and create additional demand through systematic token removal from markets. According to the governance proposal, this strategy “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.”
Multi-Chain Implementation Targets Supply Reduction
The buyback program will collect fees from WLFI liquidity positions across Ethereum, BNB Chain, and Solana networks. These accumulated fees will fund open market purchases of WLFI tokens, which are subsequently sent to burn addresses for permanent removal from circulation.
However, the proposal lacks specific estimates regarding fee generation amounts, making it difficult to assess the potential market impact of the buyback operations. The platform has not disclosed projected revenues or timelines for meaningful supply reduction through this mechanism.
The governance vote occurred nearly three weeks after WLFI’s September 1 token launch, which resulted in a 40% price decline within the first three trading days. This sharp correction caused substantial losses for early investors and whales who participated in the initial distribution.
Current market data shows WLFI trading at $0.2223, representing a 28% decline from launch levels according to CoinMarketCap. The continued price weakness persists despite the project’s previous attempt to support valuation through a 47 million token burn executed on September 3.
The approved proposal establishes what project leaders characterize as the “foundation” of WLFI’s ongoing buyback strategy. Platform administrators indicated plans to explore additional protocol revenue sources that could increase the scale and frequency of future token buybacks and burns.
This supply reduction approach follows similar mechanisms employed by other cryptocurrency projects seeking to address downward price pressure through systematic token removal. The effectiveness of such programs typically depends on the volume of fees generated relative to overall token supply and trading activity.
Source: https://thenewscrypto.com/world-liberty-financial-approves-100-treasury-fee-allocation-for-token-buybacks/
