World Liberty Financial proposes buyback program for long-term holders while WLFI tumbles after launch

The World Liberty Financial team has put forward a proposal to allocate all fees generated from its protocol-owned liquidity toward purchasing and permanently burning WLFI tokens. 

“This program 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,” the proposal said.

The plan stipulates that fees collected from WLFI’s liquidity positions on Ethereum, Binance Smart Chain and Solana will be used to repurchase WLFI tokens on the open market. These tokens would then be sent to a burn address, removing them from circulation.

However, fees from community or third-party liquidity providers are not included in this program. 

The proposal explained that higher protocol usage would lead to increased fees, resulting in more tokens being burned. All burn transactions would be recorded on-chain and reported to the community for transparency, the team noted.

The community can vote on three options: support directing all treasury protocol-owned liquidity fees to the buyback and burn program, oppose the plan and retain fees in the treasury, or abstain from expressing a preference.

If approved, WLFI intends to explore expanding the program to include additional sources of protocol revenue, with the goal of scaling the initiative as the ecosystem grows.

While details on voting and implementation schedules are yet to be announced, a majority of the replies on the proposal are currently positive.

WLFI Launch

World Liberty Financial’s native token started trading on crypto exchanges on Monday. The token started trading at $0.32, then subsequently plunged 34% to a low of $0.21, according to The Block’s WLFI price page. It is currently trading at around $0.23 as of 12:30 a.m. on Tuesday.

CoinGecko data shows that over $2.5 billion worth of WLFI has been traded since launching on the major exchanges, including Binance, Coinbase and Upbit. Around 27.35 billion WLFI tokens are currently in circulation, out of a total of 100 billion.

Even with the token’s significant price drop from its launch, its pre-sale investors remain well in profit, as they acquired it at just $0.015 each. According to Bubblemaps, Tron Founder and crypto billionaire Justin Sun’s WLFI holdings are still up roughly tenfold.

World Liberty Financial was founded in 2024 as a DeFi and crypto company, publicly backed by U.S. President Donald Trump and his family. It has also launched its dollar stablecoin USD1, which is currently ranked as the sixth-largest stablecoin with a $2.6 billion market capitalization.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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