Trump-backed DeFi project World Liberty launches buyback and burn of WLFI. The decision after the price collapsed by 41% in September was approved by 99% of holders.
World Liberty launches buyback and burn of WLFI after the drop
The decentralized financial project World Liberty Financial, supported by the Trump family, announced the start of a buyback and burn program for tokens. According to CoinGecko, in September WLFI fell by 41% – from $0.33 at the beginning of the month to $0.19 as of Friday.
Buyback & burn mechanism
The project confirmed that the token buyback will be financed by fees from its own liquidity pools in Ethereum, BNB Chain and Solana. The purchased WLFI will be sent to burn addresses, finally being removed from circulation. Thus, the supply on the market will decrease, which, according to the team, should stabilize the price.
Community vote
The initiative passed the vote with the support of 99% of WLFI holders. The team explains that each transaction in the system will now actually reduce the total number of tokens in circulation. At the same time, it is emphasized that the mechanism does not apply to third-party liquidity pools created by the community.
How many WLFI will be burned is unknown
Some market participants assume that up to 4 million WLFI will be burned daily, which could reduce almost 2% of the total supply per year. However, in the final proposal, the team did not specify the exact scale of the buyback & burn.
Related: The wallet of Tron founder Justin Sun was blacklisted by World Liberty after he moved $9M in WLFI tokens
