World Liberty Financial to Launch Token Buyback and Burn After 41% Monthly Price Drop

Trump-family backed World Liberty Financial announced on Friday that it will begin a token buyback and burn program for WLFI next week following a steep price decline. According to CoinGecko, WLFI was trading at $0.19 on Friday, down about 41% from its all-time high of $0.33 set on September 1.

The move comes after a community vote in favor of the initiative, which passed with an overwhelming 99% approval from token holders. The team pledged to make the process transparent by publicly disclosing every buyback and burn as they occur.

How the Buyback and Burn Works

Token buyback and burn is a common strategy used to reduce circulating supply and relieve selling pressure when prices weaken. Under this plan, World Liberty will collect fees generated from its treasury liquidity positions across Ethereum, BNB Chain, and Solana. 

These funds will then be used to repurchase WLFI tokens on the open market, which will subsequently be sent to an unusable “burn” address, permanently removing them from circulation.

In its proposal, the team explained that the mechanism will directly decrease supply because “every trade will remove WLFI from circulation,” potentially stabilizing the token’s price as it becomes more scarce. They added that the program is designed to scale alongside the platform’s growth—higher trading volumes and fees will result in more tokens being burned.

However, the team clarified that only WLFI-controlled liquidity pools are included in the plan. Community-run or third-party liquidity pools will not be affected.

Questions Remain on Scale of Burn

While some community members have estimated that the program could eliminate around 4 million WLFI tokens per day, which would amount to nearly 2% of the total supply annually, the proposal does not specify an exact number of tokens to be purchased and burned. The team emphasized that the amount will depend on the liquidity fees collected over time.

The buyback and burn strategy underscores World Liberty Financial’s effort to restore investor confidence and stabilize its token after a challenging month. Also, whether the program succeeds in reversing the downward price trend will depend on market conditions.