The World Liberty Financial (WLFI) community is voting on a proposal that would burn all fees earned from the protocol’s liquidity positions by redirecting them to purchases of WLFI on the open market.
If the proposal is approved, the system will operate without interruption. Fees collected from the protocol’s treasury’s liquidity pools will first be used to purchase WLFI on the open market, and then the purchased tokens will be sent to the burn address and removed from circulation. This process will, in theory, allow the remaining tokens to receive a greater share of the protocol’s activities.
Burns will be transparent on-chain and could be expanded to include other revenue streams for the protocol in the future. The proposal argues that revenues from the community or third-party liquidity providers will not be affected by this process.
According to the project’s governance portal, with one week left to vote, support has reached an overwhelming majority of 99.57 percent. The vote was “no” by 0.09 percent and abstentions by 0.34 percent.
World Liberty Financial is a decentralized finance initiative that has received public support from members of the Trump family. The protocol aims to bridge the gap between traditional finance and blockchain-based markets with a fully-reserved USD stablecoin and treasury-like structure. Previous community votes have granted trading permission for the WLFI token, and revenue-based buyback mechanisms have been discussed.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/preparations-underway-for-a-major-token-burn-in-the-most-popular-altcoin-of-recent-days/
