The Trump family-backed decentralized finance (DeFi) project, World Liberty Financial, will roll out a token buyback and burn program this week after WLFI tokens plunged 41% in September.
In a Friday announcement, the project confirmed that its team will begin executing buybacks and burns over the coming days. Each transaction will be publicly disclosed, with updates shared once completed.
Buyback and burn mechanisms are often used to ease selling pressure during price declines. Buybacks involve repurchasing tokens from the market, while burns permanently remove them by sending them to an inaccessible address. Together, these actions reduce circulating supply.
The move comes after WLFI’s sharp September downturn. Data from CoinGecko shows the token was trading at $0.19 on Friday, down 41% from its all-time high of $0.33 on Sept. 1.
WLFI Buyback and Burn Follows Governance Approval
World Liberty Financial’s decision to implement a buyback and burn mechanism for treasury liquidity fees comes after a community governance vote that passed with 99% approval from token holders.
Under the plan, the team will use fees collected from liquidity positions on Ethereum, BNB Chain, and Solana to repurchase WLFI tokens from the open market. These tokens will then be sent to a burn address, permanently reducing supply.
According to the proposal, the mechanism will directly shrink WLFI’s circulating supply, with every trade contributing to token removal. The team suggested this could help support price stability as scarcity increases. They also noted that as the platform grows and generates more fees, more WLFI will be burned.
However, the team clarified that only WLFI-controlled liquidity pools are included in the program; community and third-party liquidity pools will not be affected.
Uncertainty Over Burn Amounts
Some community members speculated that the mechanism could eliminate up to 4 million WLFI tokens daily, potentially burning nearly 2% of total supply annually. Still, the proposal does not specify exactly how many tokens will be bought back and burned.
Cointelegraph reached out to World Liberty Financial for clarification but did not receive a response by publication time.
