World Liberty Financial has unveiled a proposal to divert all fees generated from its protocol-owned liquidity toward the repurchase and permanent burn of WLFI tokens, in what the team describes as a deflationary mechanism aimed at rewarding long-term holders.
According to the proposal, fees collected from liquidity positions controlled directly by the protocol on Ethereum, Binance Smart Chain, and Solana would be used to buy WLFI tokens on the open market. These tokens would then be permanently removed from circulation by sending them to a burn address. The measure does not apply to liquidity provided by community members or third parties.
“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 stated.
The team emphasized that the mechanism would scale with network activity: as protocol usage increases, so too would fee generation, thereby boosting the number of tokens burned. Burn events will be fully transparent, with all transactions recorded on-chain and disclosed to the community.
Community members will be able to vote on three options: to direct all protocol-owned liquidity fees into the buyback-and-burn program, to oppose the initiative and retain fees in the treasury, or to abstain from expressing a preference. If the proposal secures approval, WLFI intends to explore expanding the burn mechanism to other revenue sources across its ecosystem.
The governance initiative comes just as World Liberty Financial’s native token began trading on major exchanges. WLFI debuted at $0.32 on Monday before tumbling 34% to a low of $0.21. By early Tuesday, it had stabilized around $0.23, according to The Block’s WLFI price page.
Despite the steep decline from launch, early backers remain deeply in profit, having bought into the pre-sale at $0.015. Blockchain analytics firm Bubblemaps shows that Tron founder Justin Sun’s WLFI holdings remain up tenfold even after the recent volatility.
CoinGecko data indicates that trading volume has been strong, with more than $2.5 billion worth of WLFI exchanged since the token’s debut across Binance, Coinbase, and Upbit. About 27.35 billion WLFI are in circulation out of a total supply of 100 billion.
Founded in 2024 with the public backing of U.S. President Donald Trump and his family, World Liberty Financial has positioned itself as a major player in the tokenized economy. Alongside WLFI, it launched the USD1 stablecoin, which has grown into the sixth-largest stablecoin globally with a market capitalization of $2.6 billion.
