WLFI, the native cryptocurrency of the Trump family’s DeFi Project World Liberty Financial, has been facing selling pressure, correcting 30% from the highs of $0.32. The parent group has now come up with a 100% fee burn proposal, along with a buyback plan, which will reduce the number of WLFI tokens in circulation. This could further lead to strong price action on the upside.
World Liberty Financial Brings New Governance Proposal
Within 24 hours of WLFI going live on Binance, the community has introduced a new proposal to allocate all protocol-owned liquidity (POL) fees toward open market buybacks and permanent burns of WLFI tokens. This move aims at reducing the overall circulating supply and supporting long-term value.
According to the proposal by World Liberty Financial, the policy would apply exclusively to fees generated by WLFI-controlled liquidity. This excludes contributions from community or third-party liquidity providers.
As of now, WLFI generates fees from its protocol-owned liquidity positions across Ethereum, BSC, and Solana, which are then used for token buybacks on the open market. The repurchased WLFI tokens are subsequently sent to a burn address, permanently removing them from circulation and reducing the overall supply. While sharing plans of future expansion, WLFI noted:
“If this proposal is passed, WLFI will treat it as the foundation of an ongoing buyback and burn strategy. Over time, we will explore expanding the program to include additional sources of protocol revenue, with the goal of steadily increasing the scale of WLFI buybacks and burns as the ecosystem grows”.
As part of its expansion plan, the Defi project recently introduced its USD1 stablecoin to Solana. Over the past month, the market cap for the stablecoin has surged by $467 million to $2.67 billion.
Trump Family Wealth Jumps to $5 Billion With WLFI Launch
Within the first hour of launch, WLFI market cap surged to nearly $10 billion, making it among the top-20 ranking digital assets in the market. As per the latest report from The Wall Street Journal, the Trump family’s net worth surged by approximately $5 billion following the launch of the WLFI, the native token of DeFi project World Liberty Financial.
The project lists Donald Trump as an “honorary co-founder,” while his three sons serve as co-founders. The family reportedly holds less than 25% of WLFI, which has likely become their most valuable asset, overtaking their real estate holdings.
Following the bottom at $0.2095, WLFI price is showing signs of recovery, and is currently trading at $0.2358. The WLFI open interest (OI) also remains strong at $920 million, as per the Coinglass data.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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Source: https://coingape.com/world-liberty-financial-wlfi-struggles-despite-100-fee-burn-and-buyback-proposal/