In brief
- WLFI token holders passed a proposal to buy back and burn the token using earned fees.
- Fees earned will buy used to buy WLFI from the open market and effectively remove them from the circulating supply.
- WLFI is currently up 6% on the day and more than 13% in the last week.
The WLFI token of the Trump-backed DeFi protocol World Liberty Financial is rising amid news that the protocol intends to buy back and burn the token with fees it earns from providing liquidity.
WLFI has risen over 6% in the last 24 hours and more than 13% in the last week, now changing hands at $0.236.
The firm’s buyback and burn program plans were officially approved via a governance vote in which WLFI token holders overwhelmingly voted in favor of the proposition with 99.84% “for.”
“This proposal directs all fees earned by WLFI’s protocol-owned liquidity (POL) to be used for buying WLFI on the open market and permanently burning it,” it reads.
In other words, all the fees earned by World Liberty Financial for providing liquidity with its treasury funds will purchase tokens, which will subsequently be burned—or effectively destroyed and removed from the supply.
World Liberty currently earns fees from trading on the Ethereum, Solana, and BNB Chain.
The proposal also considered alternative uses for the fees, like keeping them in the treasury for operations or splitting with a burn program, but ultimately believed that the “community preference” was to burn 100% of fees earned.
The WLFI token debuted for trading in early September, quickly jumping to more than $0.26—greater than a 1,700% gain for allowlisted buyers of the token who were able to purchase it for just more than a penny. The token peaked above a price of $0.33 on the day that trading began.
Initially the token was not tradeable and was only used as a governance token, but a proposal was passed in July to make it eligible for trading on the open market.
The Trump-backed project has led to a significant boon to the family’s wealth, with the value of their holdings jumping as high as $6 billion thanks to their collectively owned 22.5 billion WLFI tokens. That amount is now worth just more than $5 billion.
Since launching last year, the DeFi protocol unveiled its own stablecoin—USD1—which has gone on to earn a Coinbase listing. The dollar-backed stablecoin also trades on Ethereum, BNB Chain, Solana, and Tron.
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Source: https://decrypt.co/340444/wlfi-rises-trump-backed-world-liberty-buy-back-burn-tokens
