WLFI Token Buyback and Burn Program Launched Amid 41% Price Drop

World Liberty Financial (WLFI), a decentralized finance (DeFi) project endorsed by the Trump family, has unveiled a token buyback and burn program in response to a steep 41% decline in its token price throughout September. As detailed by Cointelegraph on September 26, WLFI plans to initiate the buyback-and-burn process starting next week, marking a proactive step toward stabilizing its token value during challenging market conditions.

The token's sharp downturn began on September 1, with its price plummeting from $0.33 to $0.19 as of September 25. CoinGecko data verifies this 41% monthly decrease, underscoring the urgency for action as WLFI faces intensified selling pressure.

Governance Vote Spurs Initiative

This new mechanism stems from a governance vote involving WLFI token holders, with nearly 99% of participants supporting the proposal. Announced via the official WLFI Twitter account on September 25, the initiative leverages Treasury liquidity fees to fund the buyback and burn strategy:

“Governance Update:
The community has voted to use 100% of WLFI Treasury Liquidity Fees for Buyback & Burn, passing with almost unanimous support.
The team will begin implementing this initiative this week, and all buybacks & burns will be transparently posted once conducted.”
— WLFI (@worldlibertyfi), September 25, 2025

WLFI has committed to transparency by promising to publish all transactions associated with the buyback and burn process. These measures are aimed at enhancing credibility while boosting investor confidence amidst heightened market volatility.

Understanding the Buyback and Burn Mechanism

The buyback and burn approach is a common strategy implemented by blockchain projects to counteract selling pressure and stabilize token prices. Through a buyback, the project repurchases tokens from the open market, whereas the burn involves sending these tokens to an inaccessible address, permanently removing them from circulation. Together, these actions reduce the circulating supply, potentially fostering scarcity and supporting price stability.

In WLFI's case, the mechanism will utilize fees generated from liquidity operations across Ethereum (ETH), Binance Smart Chain (BNB), and Solana (SOL). These fees will be allocated toward WLFI token repurchases, followed by burning the acquired tokens to decrease overall supply. However, WLFI clarified that transaction fees from community-contributed or external liquidity pools will not be integrated into the burn process, narrowing the scope of applicable fees.

Uncertainties and Projected Impacts

While industry estimates suggest that WLFI could burn as many as 4 million tokens daily through this program—equating to an annual supply reduction of around 2%—the platform has yet to provide exact data or projections regarding the anticipated burn volume. This lack of specifics has led to speculation about the long-term effects of the program on the token's value.

The initiative’s proposal emphasizes a gradual increase in scarcity as the platform's liquidity fee revenue grows, enabling a greater number of tokens to be burned over time. Despite this promising outlook, the absence of definitive metrics has left some stakeholders questioning the precise impact of the buyback and burn mechanism on WLFI’s market performance.

Strengthening Investor Confidence Through Proactive Governance

WLFI’s adoption of this community-driven initiative highlights the expanding role of active governance and dynamic economic strategies within the volatile cryptocurrency landscape. By addressing market challenges head-on through transparent action, WLFI sets an example for other DeFi projects aiming to regain investor trust during periods of stress.

As WLFI endeavors to stabilize its token value and enhance scarcity through consistent buyback and burn efforts, the program could evolve into a valuable precedent for managing token economics in the ever-changing crypto ecosystem.