WLFI Fee Buyback & Burn Proposed After 30% Price Drop
World Liberty Financial’s governance team has proposed using 100% of protocol-owned liquidity fees across Ethereum, BNB Chain and Solana to buy back WLFI tokens and permanently burn them. The move aims to reduce circulating supply, increase scarcity and boost the relative ownership of committed long-term holders. Alternative splits, such as a 50/50 allocation between treasury and burn, were considered but rejected. Key uncertainties include the actual fee volumes and the absence of a contingency plan if the treasury requires emergency funds. Earlier this week, a 24.6 billion WLFI token unlock lifted the Trump family’s token holdings to $5 billion, swelling the circulating supply to 27.3 billion of 100 billion and a market cap of $6.6 billion. Since its Monday launch, WLFI plunged about 36% from a peak of $0.331 to $0.210 before recovering slightly to $0.229—down nearly 30% on the day. The buyback-and-burn proposal seeks to curb short-term selling pressure and align platform usage with token scarcity.
Bullish
Implementing a full-fee buyback-and-burn aligns platform revenue with token scarcity, a mechanism that historically supports price stability and upward pressure over the medium to long term. Similar programs—such as Binance’s quarterly BNB burns—have reinforced token value and holder confidence. By targeting short-term sellers and reducing circulating supply, the proposal may curb immediate selling pressure and set the stage for a price rebound. However, uncertainties around fee volume and lack of emergency treasury provisions mean the market could react cautiously in the short term. Overall, the clear commitment to reducing supply and rewarding long-term holders suggests a bullish outlook for WLFI.