World Liberty Financial Proposes Major Buyback and Burn

World Liberty Financial (WLFI) has proposed a new initiative to channel all fees from its protocol-owned liquidity toward open-market buybacks and permanent token burns. The goal is to reduce circulating supply while rewarding long-term token holders. 

The proposal, introduced on September 12, applies only to liquidity pools directly controlled by WLFI on Ethereum (ETH), Binance Smart Chain (BNB), and Solana (SOL). Fees from community or third-party liquidity providers remain unaffected.

How the Proposal Works

The buyback-and-burn program is designed to take trading fees generated by WLFI’s own liquidity positions and convert them into permanent supply reductions. Key mechanics include:

• Fee Collection: WLFI collects fees from liquidity pools under its direct control on Ethereum, BNB Chain, and Solana.
• Open-Market Buybacks: Fees are used to purchase WLFI tokens directly from the open market.
• Permanent Burns: Purchased tokens are sent to a burn address, permanently removing them from circulation.
• On-Chain Transparency: Every transaction is recorded on-chain, allowing the community to verify each step.

The proposal excludes fees from partner liquidity pools or third-party providers, focusing exclusively on protocol-controlled liquidity (POL).

Objectives and Rationale

WLFI’s team explained that this strategy links token value directly to protocol activity. The objectives include:

• Direct Supply Reduction: Every trade in protocol-owned liquidity contributes to permanent token burns.
• Stronger Holder Alignment: Tokens held by passive participants are removed from circulation, increasing the relative stake of committed long-term holders.
• Protocol Usage Incentives: Increased trading volume translates into higher fee generation and more frequent burns.
• Transparency: All buybacks and burns are verifiable on-chain.

WLFI considered alternatives, such as retaining fees in the Treasury or splitting fees between operations and burns. Community feedback favored a full burn model, prioritizing clear and measurable supply reduction.

Voting and Community Response

The community vote on the proposal is set to conclude on September 18, with preliminary results showing overwhelming support:

• Votes in Favor: 1.3 billion (99.51%)
• Votes Against: 0.38%
• Turnout: 135% of the required quorum

Voting options included:

• FOR: Direct all WLFI Treasury POL fees to buyback and burn
• AGAINST: Retain fees in the Treasury
• ABSTAIN: No preference

The strong consensus reflects broad approval for a deflationary mechanism tied to actual trading activity rather than speculative hype.

Technical Implications

Implementing the buyback-and-burn program requires precise execution to maintain transparency and protocol integrity:

• Multi-Chain Implementation: The program will operate across Ethereum, BNB Chain, and Solana.
• Manual Execution: WLFI team executes transactions manually, ensuring control while maintaining on-chain proof.
• Liquidity Considerations: Only POL-generated fees are used, preventing disruption to third-party or community liquidity pools.
• Long-Term Planning: The proposal sets the foundation for a continuing buyback and burn strategy, with potential future expansions to other protocol revenue streams.

Early Market Context

WLFI’s proposal comes after a turbulent token launch on September 1. The token initially traded at $0.46 on major exchanges such as Binance, Coinbase, and Upbit, before dropping to approximately $0.201 in the days following. Early volatility was amplified by the Trump family’s significant stake, which increased their net worth by roughly $5 billion on launch day. Critics argued that retail traders bore the brunt of this uneven distribution.

A prior burn on September 2 involved 47 million tokens, roughly 0.19% of the supply, but failed to restore the token price. Per reports, the new buyback-and-burn strategy is intended to establish a sustainable deflationary mechanism tied to trading activity rather than short-term interventions.

Strategic Considerations

The WLFI proposal aligns with broader trends in blockchain tokenomics, including:

• Deflationary Models: Reducing circulating supply can increase scarcity and relative value for committed holders.
• Protocol-Owned Liquidity: Using POL for buybacks allows the project to capture a direct feedback loop between usage and token supply.
• Transparency and Accountability: On-chain recording of all buyback and burn operations mitigates skepticism from retail and institutional participants.

Analysts note, however, that token unlocks or vesting schedules may counteract supply reduction, and supply control alone does not guarantee sustained price stability.

Related Initiatives: Project Wings

Simultaneously, WLFI unveiled Project Wings, aimed at increasing adoption of its USD1 stablecoin on Solana. Key features include:

• USD1 Base Pair: Token creators can launch projects using USD1 as the primary pair.
• Incentivized Trading: Users earn rewards for participating in launches or staking USD1.
• Platform Partnerships: Integrates with Bonk.fun and Raydium Protocol to boost liquidity and trading efficiency.

Project Wings complements the buyback-and-burn program by increasing ecosystem activity and providing new sources of protocol fees that could eventually feed into future burns.

Conclusion

The World Liberty Financial buyback-and-burn proposal offers a structured, multi-chain approach to token supply reduction. By channeling fees from POL exclusively toward open-market purchases and permanent burns, the project aims to:

• Reduce circulating supply
• Strengthen long-term holder alignment
• Tie token value to real protocol activity
• Maintain transparent on-chain verification

If passed, the initiative will set the stage for a continuous deflationary model with measurable outcomes, supported by community-approved governance and multi-chain implementation.

Resources:

1. World Liberty Financial recent proposal: https://vote.worldlibertyfinancial.com/#/proposal/0x21cb61f1d9256335e656d2a63d8ac0ceddb1313ad490c95b713bbef9e313fda2

2. Trump Family Adds $1.3 Billion of Crypto Wealth in Span of Weeks -  report by Bloomberg: https://www.bloomberg.com/news/articles/2025-09-07/trump-family-adds-1-3-billion-of-crypto-wealth-in-span-of-weeks

3. $WLFI Token Details: https://coinmarketcap.com/currencies/world-liberty-financial-wlfi/