World Liberty Financial has introduced a new proposal to direct all reimbursements from the liquidity of the protocol in the direction of open-market purchasing and permanent token fire wounds.
Summary
- WLFI has proposed to use all reimbursements from the liquidity of the protocol for buybacks and burns.
- The plan follows a 47 million token fire that did not increase prices after a volatile launch.
- Analysts warn that upcoming unlocking can limit the impact, despite transparency blows.
The proposalSubmitted by World Liberty Financial (WLFI) on 12 September, is intended to restore the trust of investors after a turbulent launch. The initiative would only apply to liquidity pools that are directly governed by WLFI on Ethereum (ETH), BNB chain (BNB) and Solana (SOL).
Costs of community or external liquidity providers would remain unaffected.
A shift to supply reduction
According to the proposal, trading costs of liquidity pools would be used under the direct control of WLFI to finance an automated return and fire process. The program would permanently reduce the amount of tokens in circulation, so that purchased tokens are sent to a combustion address. All transactions would be registered on the chain for transparency.
The project argued that this strategy would better link the value of the token to the protocol use, reduce the supply for each trade and would increase the relative weight of dedicated holders in the long term.
When explaining the reason, the team noted that they had considered alternatives, such as keeping costs in the treasury or splitting revenues between operations and burns. Eventually they said that feedback from the community to a complete burn strategy pointed out as the clearest way to restore the momentum.
Token holders are now voting on whether or not to approve the plan, with the deadline before September 18. Until now, the proposal has received 99% of the community support.
Market turbulence and skepticism of investors
The proposal comes at a sensitive moment for WLFI. The Token was launched on 1 September in large fairs, including Binance, Coinbase and Upbit, and was initially traded to $ 0.46. Within a few days, however, it collapsed close to $ 0.21, which made many early buyers in red.
On 2 September the project tried to stabilize sentiment with the burn of 47 million tokens, about 0.19% of the offer, but the price did not return and last floated around $ 0.201.
The decrease followed widespread attention on the great importance of the Trump family, which increased their assets by around $ 5 billion on the launch day. Critics claim that the rollout was preferred to insiders, while retail traders have absorbed the volatility.
Against that background, the new return and-burn program is positioned as a corrective step to reassure the market that the value of WLFI will be powered by actual protocol activity rather than hype.
However, analysts point out that there are challenges with the approach. Future token unlocks can compensate for the deflatoar effect of burns, and it is unclear whether the supply reduction can in itself stabilize demand in the absence of a clear disaster plan.
