Trump-Backed World Liberty Plans Token Buybacks later than 41% Price Slump
a decentralized finance (DeFi) project backed by the Trump family, proposes to begin purchaseing back and burning tokens later than the price of WLFI tokens dropped by 41% in September. The goal of the repurchase and burn program is to lower the number of WLFI tokens in circulation and keep the price steady while the project works to increase its market value.
At the beginning of September, WLFI tokens a high price of $0.33, but by the end of the month, they had dropped to about $0.19. The project’s leadership has put plans into action to assist prices go back up and keep investors’ trust later than a 41% drop in price.
What is the purchaseback and Burn Mechanism?
The purchaseback and burn approach means that the project uses treasury liquidity fees from liquidity pools on ETH, BNB Chain, and to purchase back WLFI tokens on the open market. These tokens are subsequently delivered to a burn address, where they will stay forever, effectively taking them out of circulation.
Token purchasebacks reduce the number of tokens available on the market, which assists to ease tradeing pressure. Burning tokens makes sure they can’t be put back into circulation, which creates scarcity that may assist keep the value of tokens over time.
made it clear that purchasebacks and burns will only be paid for with fees from liquidity pools that WLFI controls. This method won’t change anything for community-led or third-party liquidity pools.
Support and Governance in the Community
The idea comes later than a broad governance vote in which 99% of WLFI holders accepted the proposal. This shows that the community strongly supports steps that will assist the platform last for a long time. The move indicates that the project is serious about using decentralized governance to deal with difficultys in the market before they happen.
Effects and Future Outlook
There are no exact numbers on how many tokens will be repurchased and burned; however, some people think that the process might burn about 4 million WLFI tokens every day. This would mean that over 2% of the total supply would be pulled out of circulation every year. This might lead to a significant drop in supply that would assist keep prices stable.
The WLFI Team also said that if the platform expands and makes more money, the number of tokens burned will also go up, which will keep the supply in line with the platform’s activities.
World Liberty Financial aims to make public announcements about each repurchase and burn event, making sure that the program is open and honest. The token purchaseback and burn initiative shows how with government support are using classic market stability strategies that have been adapted for decentralized systems.
