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World Liberty Financial (WLFI), a crypto project backed by former U.S. President Donald Trump, has passed a governance proposal to implement a sweeping WLFI token buyback strategy. The measure comes after weeks of disappointing price action following the project’s highly publicized launch earlier this month.
According to WorldLibertyFinancial.com, the proposal received 99.8% support in Thursday’s vote, with just 0.06% of the community opposing it. The strategy mandates using 100% of the project’s treasury liquidity fees to repurchase WLFI tokens from the market and permanently remove them from circulation through a burn mechanism.
“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 governance proposal stated.
Token buyback-and-burn models are designed to reduce circulating supply, thereby generating scarcity and potentially supporting higher prices. Still, the WLFI token buyback lacks clarity on the actual fees available for purchases, leaving investors uncertain about its long-term market impact.
The governance vote comes just weeks after WLFI’s official debut on Sept. 1, which quickly soured for many investors. Within three days of launch, the token plunged 40%, wiping out millions of dollars in value. According to CoinMarketCap, WLFI remains down more than 28% since its launch, trading at $0.22 at the time of writing.
On Sept. 3, the project burned 47 million WLFI tokens in an earlier attempt to stabilize prices. That intervention failed to halt the post-launch slide, leaving community members pressing for a stronger, ongoing mechanism.
“Investors often look to token burns as a bullish signal, but their effectiveness depends on scale and transparency,” — Katie Talati, Head of Research at Arca, in a statement to Bloomberg.
The new proposal signals that WLFI intends to collect liquidity from pools on Ethereum, BNB Chain, and Solana to fund its buyback operations. Repurchased tokens will then be sent to a burn address, ensuring permanent removal from circulation.
Project leaders have described the WLFI token buyback plan as the “foundation” of a broader strategy to restore investor confidence. In addition to using liquidity fees, WLFI is exploring new sources of protocol revenue to expand the scale of buybacks.
Cointelegraph reported that the project has not disclosed specific revenue streams under consideration. Requests for comment from WLFI on the timeline and magnitude of the first buybacks have so far gone unanswered.
“Without clear projections on revenue, it’s impossible to know whether this buyback will have a meaningful effect,” — Mark Palmer, Senior Analyst at Berenberg Capital Markets, in remarks to CoinDesk.
For now, uncertainty remains about whether WLFI can generate enough trading activity and fee revenue to sustain its proposed strategy.
The WLFI launch has already claimed high-profile casualties. Former kickboxing champion and controversial influencer Andrew Tate disclosed a $67,000 loss on a WLFI long position via decentralized exchange Hyperliquid. His cumulative trading losses on the platform reportedly approach $700,000.
Despite the struggles, the Trump family has profited significantly from its association with the venture. According to Forbes, the family’s collective wealth jumped by $1.3 billion in the week leading up to Sept. 7, buoyed by the debut of American Bitcoin (ABTC) and WLFI-related gains.
The WLFI token buyback program may provide a potential pathway for price stabilization, but it also highlights the risks of speculative hype and politically tied ventures in the crypto market.
For crypto investors, the WLFI token buyback represents both an opportunity and a gamble. If buybacks are implemented at meaningful scale, they could reduce supply and support higher valuations. But the lack of transparency around fee generation raises questions about execution and impact.
“Tokenomics can create short-term optimism, but ultimately, sustained demand—not supply reduction—determines long-term value,” — Alex Krüger, crypto economist, via X (formerly Twitter).
As WLFI works to implement its first buybacks, investors will be closely watching whether the strategy restores credibility to a token that has struggled since day one. Until clearer details emerge, caution remains the prevailing sentiment in the market.
