WLFI Proposes Using All POL Fees for Token Buyback and Burn
WLFI has submitted a governance proposal to allocate 100% of its protocol-owned liquidity (POL) fees toward repurchasing and permanently burning WLFI tokens on the open market. This initiative targets fees generated exclusively from WLFI-controlled liquidity pools, leaving community and third-party liquidity provider fees untouched. If approved, the proposal will establish a continuous WLFI buyback and burn strategy. Over time, the team plans to expand the program to encompass additional revenue streams from the protocol, steadily boosting WLFI repurchases as the ecosystem grows. The move underscores a deflationary tokenomics model aimed at supporting price stability and long-term value accretion for holders.
Bullish
Allocating POL fees to a continuous buyback and burn mechanism reduces WLFI’s circulating supply and signals strong commitment to deflationary tokenomics. Such strategies historically drive positive market sentiment and price support, as seen in similar token buyback programs (e.g., BNB burn events and Uniswap buybacks). In the short term, traders may respond with increased buying pressure anticipating reduced supply. Over the long term, scaling the program to include additional revenue streams could further strengthen WLFI’s price floor and attract new investors, reinforcing bullish momentum.