World Liberty Finance has introduced a proposal for a buyback program for its native token (WLFI). The plan would use protocol-owned liquidity (POL) generated from WLFI Treasury charges to buy and burn tokens.
The proposal, which is now open for group voting, will cowl WLFI throughout Solana, Ethereum, and Binance Chain networks.
Notably, liquidity suppliers and third-party charges won’t be included within the buyback program. As a substitute, the allocation will stay strictly with them. The protocol additionally acknowledged that each one purchases and burns will likely be performed manually, with proof out there on-chain for verification throughout the supported networks.
Market Affect of the Proposal
Buyback-and-burn packages are sometimes utilized by protocols to scale back the availability of tokens in circulation, creating a possible provide squeeze.
A provide squeeze happens when the variety of tokens out there falls beneath market demand, typically driving the asset’s worth larger.
In its X submit asserting the proposal, World Liberty Finance famous that its plan goes past merely boosting demand for WLFI. The acknowledged goal is to “cut back circulating provide and reward long-term holders.”
Thus far, the vote has proven overwhelming assist, with 99.57% in favor. Solely 0.43% of votes have been solid in opposition to or abstained.
If permitted, WLFI would be a part of a small group of protocols adopting this strategy. Hyperliquid, for instance, has spent tens of millions on an analogous mannequin, which analysts consider contributed to its latest all-time excessive.
About World Liberty Finance
World Liberty Finance is a crypto entity owned by U.S. President Donald Trump and his three sons. The venture lately went dwell on a number of exchanges after an preliminary presale designed to draw long-term buyers.
WLFI launched for spot buying and selling in September with a market capitalization of $5.12 billion. At press time, the token trades at $0.207, up 14.83% over the previous week. Nevertheless, it has delivered an total decline of 9.2% since launch.
Discussions a few buyback program started earlier in September, with the proposal positioned as a approach to strengthen WLFI’s tokenomics.
FinanceFeed previously reported criticism of the plan, with some arguing that such a transfer may divert assets from operations and progress initiatives.
WLFI has confronted its share of backlash from buyers, significantly after Tron founder Justin Solar was successfully blocked following a $9 million WLFI switch to the HTX alternate on the market, elevating considerations over potential market worth manipulation.
U.S. Senator Elizabeth Warren has additionally been outspoken against WLFI, labeling its unrealized gains as “corruption, plain and simple.” She has additional criticized different Trump family-backed tasks, together with the USD1 stablecoin and the TRUMP memecoin.
