Trump’s WLFI Vote Approves 100% Treasury Fees for Buybacks
Governance Vote to Support Token Value
World Liberty Financial (WLFI), the crypto project backed by former U.S. President Donald Trump’s family, has passed a governance proposal aimed at reducing supply and boosting demand for its native token. On Thursday, WLFI confirmed that 100% of the platform’s treasury liquidity fees will now be dedicated to purchaseing back WLFI tokens on the open market and sending them to burn addresses, permanently removing them from circulation.
The measure received overwhelming community backing, with 99.8% voting in favor and only 0.06% opposed, according to data published on WorldLibertyFinancial.com. The project described the move as the “foundation” of its token purchaseback and burn strategy, which aims to increase the relative stake of long-term holders by flushing out speculative liquidity providers. The platform will collect liquidity positions across ETH, BNB Chain, and Solana to fund the purchasebacks.
“This program removes tokens from circulation held by participants not committed to WLFI’s long-term growth and direction, effectively increasing relative weight for committed long-term holders,” the proposal stated. While the purchaseback model echoes mechanisms deployed by other token projects, WLFI has yet to disclose estimates of how much revenue will be available for purchases, leaving market watchers uncertain about the potential scale of impact.
Investor Takeaway
Price Decline and ahead Struggles
The governance move comes less than a month later than WLFI’s Sept. 1 launch, which rapidly turned sour for investors. The token lost 40% of its value in its first three days of trading, generating millions in losses for whales and retail traders alike. A one-off burn of 47 million WLFI tokens on Sept. 3 did little to arrest the decline. As of Thursday, WLFI has fallen more than 28% since launch, trading at $0.2223 according to CoinMarketCap.
The lack of price support despite aggressive token burning highlighted structural issues with WLFI’s market design, prompting calls from within the community for a more permanent purchaseback mechanism. Thursday’s vote provides that framework, although investors remain cautious until measurable results emerge.
Exploring Additional Revenue Sources
In addition to the new liquidity fee program, WLFI said it would explore other potential protocol revenue sources to increase purchaseback capacity. Details remain unclear, with no timeline or financial guidance shared by the team. Cointelegraph reported that WLFI has not yet responded to requests for clarification on the magnitude of initial purchasebacks or future revenue streams. The lack of transparency has raised concerns over governance communication, even as the community overwhelmingly supported the plan.
High-profile investors have already suffered losses. Former kickboxing champion and influencer Andrew Tate reportedly lost $67,000 on his WLFI long position on decentralized platform Hyperliquid, with his cumulative losses nearing $700,000. Such reports underscore the risks facing ahead WLFI backers, even as the Trump family has viewn wealth gains from the broader crypto-linked ventures tied to their name.
Investor Takeaway
Trump Family’s Crypto Gains
The WLFI struggles stand in contrast to strong financial outcomes for the Trump family. In ahead September, the family’s collective wealth reportedly increased by $1.3 billion, fueled by the trading debut of American BTC (ABTC) and gains tied to WLFI’s launch. For political backers, the combination of high-profile endorsements and token initiatives bolsters the narrative of Trump-linked crypto ventures shaping the market despite ahead price setbacks.
WLFI’s next steps will be closely watched by both retail traders and institutional observers. The governance vote sets the framework for ongoing supply reductions, but the unanswered question is whether token burns alone can reverse bearish momentum in an environment where investor confidence has already been shaken. With U.S. elections approaching and the Trump brand firmly tied to WLFI, political narratives could further influence token demand and sentiment.
