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Trump-backed WLFI allocates 100% of treasury liquidity fees for buybacks and burns

In this post:

  • Trump-backed World Liberty Financial approves plan to use 100% of treasury liquidity fees for WLFI token buybacks and burns.
  • The governance proposal passed with 99.8% support as the project seeks to stabilize WLFI after steep post-launch losses.
  • The WLFI team prepares for a debit card and retail app launch as the token trades near $0.19 amid bearish momentum.

World Liberty Financial, the decentralized finance protocol founded by US President Donald Trump’s family, announced that the program would begin this week after it voted to allocate 100% of its treasury liquidity fees toward buying back and burning its WLFI token. 

In a governance update posted on X late Thursday, the WLFI team said all token burns and buybacks will be “transparently posted once conducted.” Cryptopolitan had reported last week that 99.84% of community participants backed the governance proposal, while only 0.06% voted against it.

Crypto community asks how much token buybacks will be approved

According to some community members on social platforms, the WLFI platform currently collects a 0.125% fee from an estimated $3.5 billion in daily trading activity, and could use those fees to buy and burn WLFI tokens. On average, about 4.375 million tokens are taken away from circulation every day.

Having a circulating supply of roughly 24.66 billion WLFI, burning 10% of the supply, or around 2.47 billion tokens, would take an estimated 564 days under the current schedule. 

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Supporters of the plan believe shrinking supply when demand goes up could boost the token’s value to reward long-term holders.

“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 read.

During WLFI’s official launch on September 1, the token had a lackluster market performance that saw it drop to an all-time low price level just three days after. WLFI had plunged 40% by September 4, shedding millions of dollars in value from investors’ bags of profits.

Despite the platform burning 47 million WLFI tokens on September 3, the move failed to reverse the decline, and the token has lost over 36% of its value since launch, according to Coingecko data.

Token burn is useless, naysayers complain

The buyback and burn program may have generated some optimism among holders, but others are not convinced that it will be enough to stabilize WLFI’s market.

According to one WLFI enthusiast on X, a portion of the presale supply could be burned and bought back by the team rather than released into circulation. Their proposal also mentioned a cap tied to fee revenues and a vesting schedule to limit how much presale supply could be unlocked annually. 

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“This would cut down sales pressure and support long-term stability,” the post argued.

Naysayers, however, say token burns do not create intrinsic value for the month-old governance token and would not raise its fundamental value either.

Another commenter called the current burn rates inadequate. “Burns from fees alone won’t take WLFI to $1; they’re too small and too slow. Price stability needs massive supply cuts, not just scraps. Unless 10B+ gets burned, $1 is a dream insiders sell while retail bleeds. We need real action, not delays,” the user wrote.

WLFI announces debit card, token price still trading red

As reported by Cryptopolitan on Monday, during a fireside chat at the Korea Blockchain Week 2025 Impact conference in Seoul, WLFI co-founder Zak Folkman revealed the project is launching a debit card.

The upcoming card will connect the project’s stablecoin, World Liberty Financial USD (USD1), with the WLFI app, with an integration into Apple Pay. The company has not yet set a release date for the product, but said it could expand WLFI’s utility and reach beyond its core DeFi trading platform.

WLFI’s market performance has been trending downward, with its price consolidating near $0.1920 at the time of this publication. There is a general sentiment of bearish momentum because moving averages are on the market value’s lower side.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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