Can WLFI's 100% Buyback-and-Burn Strategy Reverse a 60% Price Plummet?

World Liberty Financial (WLFI), a cryptocurrency project associated with former U.S. President Donald Trump, has executed a 100% buyback-and-burn proposal approved by its governance community, marking a strategic shift to stabilize its token price and align with long-term holders. The initiative, which received 99.8% approval in a governance vote, redirects all treasury liquidity fees—collected from trading activity on Ethereum, BNB Chain, and Solana—toward repurchasing and permanently burning WLFI tokens. This mechanism aims to reduce circulating supply, alleviate selling pressure, and reward committed investors amid a post-launch price decline that saw the token drop 60% from its peak.

The buyback-and-burn strategy operates through a transparent on-chain process. Treasury fees are converted into WLFI on open markets, with purchased tokens sent to a verifiable burn address for irreversible removal. Data from on-chain explorers confirms initial transactions are traceable, ensuring accountability. Analysts note the success of the program hinges on consistent fee generation, execution frequency, and market liquidity. For example, if monthly fees reach $1 million at a WLFI price of $0.20, approximately 5 million tokens could be burned annually, representing a 6% reduction in supply. However, without official revenue projections, the long-term impact remains uncertain.

The proposal follows a turbulent launch period. WLFI’s price plummeted 40% within three days of its September 1 debut, erasing millions in value for large holders. A one-time burn of 47 million tokens in early September failed to reverse the downward trend. The new program, however, introduces a continuous buyback framework, which analysts like Captain Faibik predict could drive a 25% price rally if sustained. The initiative has also coincided with broader ecosystem developments, including a partnership with South Korea’s Bithumb exchange and plans for a debit card integrated with Apple Pay.

Market participants remain cautious. While the buyback strategy theoretically supports price recovery by reducing supply, its effectiveness is contingent on treasury revenues and execution discipline. Risks include liquidity constraints during token swaps, volatility from concentrated buybacks, and limited resources for protocol development due to the 100% allocation to burns. Additionally, the lack of official fee estimates introduces uncertainty, as buyback cadence and volume could fluctuate based on market conditions.

World Liberty Financial has positioned the program as a foundational element of its treasury strategy, with potential expansion to additional revenue streams in the future. The project’s leadership emphasized that the initiative aligns with broader goals of mainstream adoption, including a USD1 stablecoin and retail payments app. As the buyback program progresses, key metrics to monitor include monthly treasury revenues, on-chain burn transactions, and liquidity depth on WLFI trading pairs.

The move reflects a growing trend in the crypto sector where projects leverage buybacks and supply reduction to stabilize token economics. For WLFI, the success of this strategy will depend on its ability to generate consistent fees and maintain transparency, ensuring long-term holders benefit from a deflationary model while mitigating risks associated with over-reliance on market-driven buybacks.