World Liberty Financial, a DeFi project publicly backed by the Trump family, is voting on a plan to use protocol fees to buy back and burn its WLFI token.
World Liberty Financial, a decentralized finance (DeFi) project with public ties to the Trump family, is holding a governance vote on a new tokenomics proposal.
The plan involves establishing a buyback-and-burn program for its native token to reduce its circulating supply.
The proposal suggests using 100% of the fees generated from the project’s protocol-owned liquidity to purchase its tokens from the open market.
These tokens would be permanently destroyed by sending them to a burn address, a standard method to tighten a token’s supply.
This initiative follows the launch of the WLFI token on Ethereum[NC] at the beginning of the month.
The project, which aims to connect traditional finance with on-chain markets, also features a USD-pegged stablecoin called USD1. The token is trading nearly 40% below its all-time high, which was recorded shortly after its Sept. 1 launch.
How the Buyback Program Works
The process is designed to be continuous and transparent, with all burn transactions recorded on-chain for the community to verify. Fees collected from WLFI’s treasury-owned liquidity positions on networks like Ethereum, BNB Chain BNB $653.3 24h volatility: 0.9% Market cap: $89.09 B Vol. 24h: $1.45 B , and Solana SOL $88.04 24h volatility: 2.4% Market cap: $50.36 B Vol. 24h: $5.15 B would be systematically used to repurchase WLFI tokens.
This mechanism makes sure that fees from community or third-party liquidity providers are not affected.
According to the official proposal, the primary goal is to directly reduce the token supply and better align the protocol with its long-term holders by removing tokens from participants not committed to the project’s growth.
The buyback-and-burn model creates a direct link between platform activity and the WLFI token price, as more usage generates more fees, resulting in more tokens being burned.
The strategy reflects a broader trend in the DeFi market where protocols use cash flows for supply reduction rather than purely for emissions. Various protocols like Hyperliquid HYPE $36.56 24h volatility: 2.8% Market cap: $8.72 B Vol. 24h: $455.50 M , pump.fun, and Raydium RAY $0.61 24h volatility: 2.4% Market cap: $163.68 M Vol. 24h: $20.46 M have spent nearly $400 million on cumulative buybacks since mid-June.
The WLFI governance vote currently has overwhelming support, with over 99% of participants in favor, and is scheduled to end on Sept. 18.
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