WLFI’s All-In Buyback Gamble: Can Scarcity Spark a Comeback?

World Liberty Financial (WLFI), a project linked to former U.S. President Donald Trump, has formally approved a 100% token buyback and burn initiative, with 99.8% of community votes in favor. The program, which redirects all treasury liquidity fees from Ethereum, BNB Chain, and Solana to repurchase and permanently destroy WLFI tokens, aims to reduce supply, reward long-term holders, and alleviate selling pressure. The initiative follows a 60% decline in WLFI’s price from its peak, with analysts like Captain Faibik forecasting a potential 25% price rally post-approval. The governance vote, executed on September 19, 2025, marks the first major structural adjustment for the token since its launch in early SeptemberTrump-Linked WLFI Passes 100% Buyback & Burn Proposal^[1].

The buyback mechanism operates by channeling fees from liquidity pools into market purchases of WLFI, which are then burned via a verifiable on-chain process. This approach ensures transparency, with transactions traceable through block explorers like Etherscan. The program explicitly excludes fees from third-party liquidity providers, focusing solely on protocol-owned liquidity (POL) to avoid distorting broader market dynamics. By permanently removing tokens from circulation, WLFI seeks to align incentives with committed holders, as reduced supply is expected to increase their relative ownership stake over timeWLFI Community Approves Buyback and Burn Proposal with …^[3].

Community support for the initiative was overwhelming, with 99.84% of votes backing the proposal, according to KuCoin’s analysis. Proponents argued that the 100% allocation to buybacks maximizes deflationary impact, contrasting with alternative proposals to split fees between operations and burns. The decision reflects a strategic pivot toward scarcity-driven value creation, with WLFI co-founder Zak Folkman hinting at future expansions, including a debit card integrated with Apple Pay and a USD1 stablecoin-linked retail appWLFI Community Votes on 100% Buyback-and-Burn Plan^[4].

Analysts have highlighted both the potential and risks of the strategy. While the burn mechanism could stabilize WLFI’s price, uncertainties remain about the magnitude of treasury fees and liquidity conditions. For instance, if monthly fees amount to $100,000 at a $0.20 price per token, approximately 500,000 WLFI would be burned monthly—equivalent to 6 million tokens annually. However, volatility in execution frequency, slippage during swaps, and reliance on decentralized exchanges (DEXs) pose challengesWLFI approves 100% buyback and burn: impact, risks, and data^[2]. Additionally, allocating 100% of fees to burns limits resources for development, audits, and ecosystem incentives, raising questions about long-term sustainability.

WLFI’s move coincides with broader efforts to boost adoption, including a partnership with South Korea’s Bithumb exchange. The memorandum of understanding (MOU) aims to expand WLFI’s market presence in a region with a $72 billion crypto market capitalization. The token’s listing on Robinhood further underscores its push for mainstream accessibility, with the platform announcing trade availability on September 25Trump-Linked WLFI Passes 100% Buyback & Burn Proposal^[1]. Despite these steps, the token’s price remains below $0.22, down 28% since its launch, as per CoinMarketCap data.

The initiative’s success will depend on consistent fee generation, transparent execution, and market confidence. On-chain data will be critical for tracking progress, with metrics like monthly treasury revenues, burn address balances, and liquidity depth on DEXs serving as key indicators. While the deflationary model offers a structural advantage, its effectiveness in reversing WLFI’s downward trend remains untested. Investors are advised to monitor these metrics alongside governance updates, as future proposals could adjust fee allocations or expand the program’s scopeWLFI approves 100% buyback and burn: impact, risks, and data^[2].