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World Liberty Financial has unveiled a proposal to channel all protocol owned liquidity fees into a WLFI token buyback mechanism followed by permanent burns. The initiative announced on Sept. 12, is designed to restore investor confidence and tie the project’s value directly to on chain activity.
The plan would only affect liquidity pools controlled directly by WLFI on Ethereum (ETH), BNB Chain (BNB) and Solana (SOL), while third party or community pools remain untouched.
According to the proposal, trading fees from WLFI’s liquidity pools will fund an automated WLFI token buyback and burn process. Tokens acquired on the open market would be sent to a burn address permanently reducing supply. Every transaction would be verifiable on chain to ensure full transparency.
World Liberty Financial argued that this WLFI token buyback approach more closely aligns token value with protocol usage, rewards long term holders and reduces circulating supply with every trade.
The team noted it had considered alternatives such as treasury accumulation or split allocation but said community sentiment overwhelmingly supported a full WLFI token buyback plan. Voting on the proposal runs until Sept. 18, with 99% of tokenholders currently in favor.
The push for a WLFI token buyback comes after a turbulent market debut. WLFI launched on Sept. 1 on Binance, Coinbase, and Upbit, reaching $0.46 before plummeting to $0.21 within days. A Sept. 2 burn of 47 million tokens 0.19% of supply failed to revive momentum with WLFI last trading near $0.201.
The sell off was compounded by criticism over the Trump family’s outsized stake which surged their net worth by $5 billion on launch day. Critics claimed insiders benefited disproportionately leaving retail traders to absorb steep volatility.
Those who are in favour of the token buyback program say it demonstrates commitment to a deflationary model and ensures value accrual is linked to real protocol usage. However, analysts caution that future token unlocks could dilute the burn’s impact and supply reduction alone may not generate sustained demand without a clearer roadmap.
Still, many in the community see the token buyback as a corrective step to reassure investors that WLFI’s value will be tied less to speculation and more to actual activity on the network.
