The Trump family-tied decentralized finance undertaking World Liberty Monetary has issued a governance proposal to implement a token buyback and burn program utilizing protocol-owned liquidity charges.
World Liberty Monetary governance has proposed utilizing 100% of protocol charges generated from the platform’s personal liquidity positions throughout Ethereum, BNB Chain, and Solana to purchase again WLFI tokens from the market and completely destroy them by way of burning.
The mechanism, if voted in, will cut back the circulating provide of the token, which began buying and selling on exchanges on Monday.
It should additionally improve the relative possession share of dedicated long-term holders and create a direct hyperlink between platform utilization and token shortage, it acknowledged.
“This program removes tokens from circulation held by contributors not dedicated to WLFI’s long-term development and course, successfully rising relative weight for dedicated long-term holders.”
If permitted, this is able to be the start line for a broader buyback technique that might finally embrace different income sources from the protocol.
The vast majority of respondents within the feedback part voiced approval of the proposal.
All-in on token burning
World Liberty Monetary collects buying and selling charges from its protocol-owned liquidity and makes use of these charges to buy WLFI tokens from short-term sellers on the open market. These tokens will then be despatched to a burn handle, eradicating them from circulation.
“The proposal favors going all-in on burning, as an alternative of splitting between treasury operations and burn,” stated WLFI ambassador “Tespmoore,” who added, “Various choices like a 50/50 break up have been thought-about however not chosen.”
There have been a few uncertainties talked about within the proposal, such because the precise charge quantities, which make it troublesome to estimate the burn affect on provide. There was additionally no contingency plan for what would occur if the treasury wanted emergency funds after committing 100% of the charges to burning.
🚨 NOW: World Liberty Monetary group proposes utilizing 100% of protocol-owned liquidity (POL) charges for $WLFI buyback and completely burning it, to scale back circulating token provide. pic.twitter.com/q4owImHlbP
— Cointelegraph (@Cointelegraph) September 1, 2025
Massive unlock offers tokens to founders
An enormous WLFI token unlock on Monday added 24.6 billion tokens to circulation and elevated the Trump household’s holdings to $5 billion.
The undertaking beforehand stated the holdings of its founders, together with Donald Trump and his three sons, Donald Trump Jr., Barron Trump and Eric Trump, would initially stay locked.
Associated: Trump household’s World Liberty stake surges to $5B after token unlock
WLFI has a circulating provide of 27.3 billion out of 100 billion and a market capitalization of $6.6 billion.
WLFI costs tank
WLFI costs have tanked since their launch this week as quick sellers offloaded the token, an issue the token burn goals to handle.
WLFI fell round 36% from the height of $0.331 to a low of $0.210 earlier than returning to commerce at $0.229, down nearly 30% on the day, on the time of writing.
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