A proposal to route fees from protocol-owned liquidity for a token buyback has sparked significant interest in the World Liberty Financial community. The buy-back proposal has garnered 99.69% of votes in its favor, with WLFI up by nearly 4% since the launch of the voting.
World Liberty Financial has put forward a proposal to use all the fees earned by the project’s protocol-owned liquidity (POL) to be deployed in the open market purchase of WLFI. According to the proposal, the ultimate goal of the buyback process is to permanently burn WLFI tokens, a move expected to yield numerous benefits for the ecosystem.
According to the proposal, the buyback and burn program will foster “stronger holder alignment” since it removes tokens from circulation held by participants that are not committed to WLFI’s long-term growth. Furthermore, the team notes that the proposal will trigger a growth spurt for WLFI, as increased usage will lead to a surge in realized fees and ultimately result in more WLFI being burned.
In terms of operation, WLFI will collect fees from its liquidity position on Solana, BSC, and Ethereum blockchains. 100% of the costs will be used to purchase WLFI tokens, with purchased tokens transferred to a burn address and recorded on the blockchain.
The proposal clarified that fees from community and third-party liquidity pools will not be affected by the buyback and burn process. Community members will have the option to vote in favor of the proposal or vote against it, opting to keep fees in the project’s treasury.
With voting set to end on September 18, 99.69% of the 4,924 votes cast are in favor of the proposal, while only 0.08% are voting against the buyback and burn plan. If passed, the proposal disclosed that the team will scale up the WLFI buyback and burns by exploring additional sources of revenue.
“We believe the community preference is to maximize impact and burn 100% of WLFI POL fees,” read the proposal.
Previous community votes opened the floodgates for WLFI trading with the Trump family-backed project, trading at $0.46 at the start of September. Prices tumbled to lows of 0.1632 before picking their way up to present levels of $0.2092, gaining over 4% over the last day. The surge in valuation has seen WLFI rank as the 30th largest cryptocurrency by market capitalization.
Apart from the proposal to make the WLFI token tradable, the community has voted to test airdrop functionality by distributing the USD1 stablecoin to token holders. The successful vote back in May led to around 85,000 WLFI holders receiving $47 worth of USD1.
