The Trump family-tied decentralized finance project World Liberty Financial has issued a governance proposal to implement a token buyback and burn program using protocol-owned liquidity fees.
World Liberty Financial governance has proposed using 100% of protocol fees generated from the platform’s own liquidity positions across Ethereum, BNB Chain, and Solana to buy back WLFI tokens from the market and permanently destroy them through burning.
The mechanism, if voted in, will reduce the circulating supply of the token, which started trading on exchanges on Monday.
It will also increase the relative ownership percentage of committed long-term holders and create a direct link between platform usage and token scarcity, it stated.
“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction, effectively increasing relative weight for committed long-term holders.”
If approved, this would be the starting point for a broader buyback strategy that could eventually include other revenue sources from the protocol.
The majority of respondents in the comments section voiced approval of the proposal.
All-in on token burning
World Liberty Financial collects trading fees from its protocol-owned liquidity and uses those fees to purchase WLFI tokens from short-term sellers on the open market. These tokens will then be sent to a burn address, removing them from circulation.
“The proposal favors going all-in on burning, instead of splitting between treasury operations and burn,” said WLFI ambassador “Tespmoore,” who added, “Alternative options like a 50/50 split were considered but not chosen.”
There were a couple of uncertainties mentioned in the proposal, such as the actual fee amounts, which make it difficult to estimate the burn impact on supply. There was also no contingency plan for what would happen if the treasury needed emergency funds after committing 100% of the fees to burning.
🚨 NOW: World Liberty Financial community proposes using 100% of protocol-owned liquidity (POL) fees for $WLFI buyback and permanently burning it, to reduce circulating token supply. pic.twitter.com/q4owImHlbP
— Cointelegraph (@Cointelegraph) September 1, 2025
Big unlock gives tokens to founders
A huge WLFI token unlock on Monday added 24.6 billion tokens to circulation and increased the Trump family’s holdings to $5 billion.
The project previously said the holdings of its founders, including Donald Trump and his three sons, Donald Trump Jr., Barron Trump and Eric Trump, would initially remain locked.
Related: Trump family’s World Liberty stake surges to $5B after token unlock
WLFI has a circulating supply of 27.3 billion out of 100 billion and a market capitalization of $6.6 billion.
WLFI prices down 36% from peak
WLFI prices have tanked since their launch this week as short sellers offloaded the token, a problem the token burn aims to address.
WLFI fell around 36% from the peak of $0.331 to a low of $0.210 before returning to trade at $0.229, down almost 30% on the day, at the time of writing.
Magazine: XRP ‘cycle target’ is $20, Strategy Bitcoin lawsuit dismissed: Hodler’s Digest, Aug. 24 – 30
