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- World Liberty Financial plans to restore confidence by using liquidity fees for buybacks and burns, reducing WLFI’s supply to help support its value after a shaky launch.
- If the community follow-through is strong and burns are significant, this could create a structural tailwind for holders.
World Liberty Financial’s community is throwing its support behind a new proposal that will boost WLFI’s value by making its token supply scarcer. The plan calls for routing all fees generated from the project’s protocol-owned liquidity (POL) into open-market purchases of WLFI tokens, which will then be permanently destroyed.
Unlike other fee structures, this initiative only applies to WLFI-controlled liquidity across Ethereum, BSC, and Solana. Fees generated by community or third-party liquidity providers will remain unaffected.
This show of support comes as WLFI made its debut on Binance, the world’s largest crypto exchange, Coinbase, and Upbit on September 1. The WLFI token is now trading on the platform against the two leading stablecoins, Tether (USDT) and USDC.
Why Does this Matter?
According to World Liberty’s report on the proposal, the buyback-and-burn model carries several benefits for WLFI holders. By reducing the circulating supply with every trade, it creates direct deflationary pressure. This will strengthen the alignment between the project and long-term supporters, as it effectively removes tokens held by less committed participants and also increases the relative weight of those who stay invested.
The model also ties growth directly to token scarcity: more usage equals more fees, and more fees mean more WLFI permanently burned. Another piece of the proposal is transparency. Every token burn is immutably recorded on-chain and openly reported to the community.
By doing so, they provide not just accountability but also a verifiable trail of activity that anyone can audit.
With this mechanism in place, WLFI collects fees from its protocol-owned liquidity positions on blockchains like Ethereum (ETH), BSC, and Solana (SOL). Those fees are then used to buy WLFI tokens directly on the open market.
Once purchased, the tokens are sent to a designated burn address, which permanently removes them from circulation. This closed-loop process ensures that the project’s growth directly translates into supply reduction, with usage effectively driving value creation.
Before arriving at this model, the team weighed several alternatives, including retaining fees in the Treasury for operational costs or adopting a hybrid approach that split fees between the Treasury and token burns. Ultimately, the community voted in favor of the most direct and deflationary option, tying protocol activity to consistent, measurable reductions in supply.
So far, World Liberty Financial’s proposal has gained backing from its community, with “FOR” votes totaling 1.5 billion, an impressive 99.51% of the total, while opposition remained minimal at just 1.7 million votes, or 0.11%.
WLFI continues to expand its technical capabilities. The project recently announced that its token is now transferable across multiple blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). CCIP leverages the Cross-Chain Token (CCT) standard to simplify transfers and make cross-chain integration seamless for developers.
This upgrade follows another WLFI partnership with Chainlink to strengthen USD1, a stablecoin launched by World Liberty Financial in March this year.
On Sept. 2, WLFI burned 47 million tokens to stabilize sentiment, yet the token continues to trade at $0.19, 56% below its all-time high of $0.46.
