World Liberty Financial Proposes Buyback-and-Burn Program Amid Price Drop
World Liberty Financial (WLFI) is implementing a buyback-and-burn program to boost confidence after a challenging trading debut. Key points include:
- WLFI launched across major exchanges but is currently trading at about 23 cents, down 24% on the day, with a market cap of $6.39 billion.
- The token initially reached valuations exceeding $40 billion before declining.
- Fees from WLFI’s liquidity positions on Ethereum, Binance Smart Chain, and Solana will fund the buyback-and-burn, aiming to reduce supply by permanently removing tokens from circulation.
- This initiative targets tokens held by those not committed to WLFI's long-term growth, aligning incentives for long-term holders.
- The proposal excludes third-party liquidity providers and aims for a 100% allocation of fees to burns, rejecting alternatives that split fees.
Supporters view this as a shift towards engineered scarcity, while another community proposal seeks to automatically stake 80% of locked WLFI tokens, intended to reduce selling pressure. This proposal has not gained significant traction compared to the burn initiative.
Despite market challenges, WLFI has support from notable figures, including Tron founder Justin Sun, who endorses the project and holds substantial WLFI tokens.