- World Liberty Financial plans 100% protocol-owned liquidity fee allocation to burns.
- Token trades at $0.2 and is now down 50% from its all-time high of around $0.46.
- Proposal includes multi-chain implementation across Ethereum, BSC, and Solana.
World Liberty Financial has introduced a governance proposal directing 100% of protocol-owned liquidity fees toward token buybacks and permanent burns. The initiative aims to create direct supply reduction mechanisms tied to platform trading activity while strengthening alignment with long-term holders.
The proposal comes as WLFI trades around $0.2, down more than 50% from its all-time high of $0.46 reached on September 1 during the token’s initial trading launch. Despite recent price volatility, the project maintains its position among the top 50 cryptocurrencies by market capitalization.
Mechanism Targets Supply Reduction Through Trading Activity
Under the proposed framework, WLFI would collect fees from protocol-owned liquidity positions across Ethereum, BSC, and Solana networks. These accumulated fees would then purchase WLFI tokens from open markets before sending them to burn addresses, permanently removing them from circulation.
The buyback and burn mechanism excludes fees generated by community or third-party liquidity providers, focusing solely on protocol-controlled positions. This approach ensures that external liquidity providers retain their fee income while the protocol systematically reduces token supply.
WLFI leadership argues that the program creates stronger holder alignment by removing tokens from circulation held by participants not committed to long-term growth. The mechanism also establishes a direct correlation between platform usage and supply reduction, with increased trading volume generating more fees for token burns.
Community Voting Will Decide WLFI Proposal Adoption
Community voting will determine proposal adoption through three options: FOR (supporting 100% fee allocation to burns), AGAINST (maintaining current treasury allocation), or ABSTAIN (no preference). The project had initially considered alternative approaches, including treasury retention or split allocations between operations and burns.
If approved, WLFI plans to treat this initiative as the foundation for expanded buyback and burn strategies. Future developments may include additional revenue sources beyond liquidity fees, potentially scaling the program as ecosystem growth generates more protocol income.
The proposal emerges amid ongoing controversies surrounding the project, including the September 4 blacklisting of Tron founder Justin Sun’s address, containing 595 million unlocked tokens valued at $107 million. This action followed Sun’s transfer of 50 million WLFI tokens to the HTX exchange. Transparency measures include on-chain burn recording and regular community reporting to track program effectiveness and token supply reduction progress.
Related: WLFI Soars 51% From Lows Before Sellers Drag Price Back to $0.20, What’s Next?
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