Introduction to World Liberty Financial’s New Proposal
World Liberty Financial has introduced a new proposal to direct all fees from its protocol-owned liquidity toward open-market buybacks and permanent token burns. This proposal, submitted on September 12, aims to restore investor confidence after a turbulent launch.
The Proposal’s Objective
The initiative would apply only to liquidity pools controlled directly by WLFI on Ethereum (ETH), BNB Chain (BNB), and Solana (SOL). Fees from community or third-party liquidity providers would remain unaffected. The primary objective is to use trading fees from liquidity pools under WLFI’s direct control to fund an automated buyback and burn process.
Reducing Token Supply
The program would permanently reduce the amount of tokens in circulation, sending purchased tokens to a burn address. All transactions would be recorded on-chain for transparency. This strategy is expected to tie the token’s value more closely to protocol usage, reduce supply with each trade, and increase the relative weight of committed long-term holders.
Rationale Behind the Proposal
The team considered alternatives such as keeping fees in the Treasury or splitting proceeds between operations and burns. However, community feedback pointed toward a full burn strategy as the clearest way to restore momentum. Tokenholders are now voting on whether to approve the plan, with the deadline set for September 18. So far, the proposal has garnered 99% of community support.
Market Turbulence and Investor Skepticism
The proposal comes at a sensitive moment for WLFI. The token launched on September 1 across major exchanges, including Binance, Coinbase, and Upbit, and initially traded as high as $0.46. However, it collapsed to lows near $0.21, leaving many early buyers in the red. The project attempted to stabilize sentiment with the burn of 47 million tokens, but the price failed to rebound.
Challenges and Concerns
Analysts point out that there are challenges with the approach. Future token unlocks may offset the deflationary effect of burns, and it’s unclear if supply reduction on its own can stabilize demand in the absence of a clear contingency plan. The drop in price followed widespread attention on the Trump family’s outsized stake, which surged their net worth by about $5 billion on launch day. Critics argue that the rollout favored insiders, while retail traders absorbed the volatility.
Restoration of Investor Confidence
The new buyback-and-burn program is being positioned as a corrective step to reassure the market that WLFI’s value will be driven by actual protocol activity rather than hype. The team aims to increase transparency and tie the token’s value to its usage, ultimately restoring investor confidence in the project. For the latest updates on this story, visit bitpulse.