- World Liberty announces a token buyback and burn program to reduce supply and stabilize value after a 40% drop.
- Token holders approve buyback and burn with a 99% vote, aiming to boost scarcity and token value.
- Up to 4 million tokens may be burned daily, cutting supply by 2% annually to help stabilize market value.
World Liberty Financial (WLFI), a decentralized finance (DeFi) initiative backed by the Trump family, has introduced a token buyback and burn program. This move comes after the value of its WLFI token reduced by close to 40% in September. The program will decrease the number of tokens and work on stabilizing their value.
The buyback and burn were announced on Friday. World Liberty Financial will launch the show this week following the immeasurable endorsement of its local community. A vote constituting 99% of the WLFI token holders. The team also committed to reporting frequent updates on every buyback and burn operation.
World Liberty Token Buyback and Burn to Counter Price Drop
Burns and token buybacks are a typical cryptocurrency strategy. A market includes a buyback, where tokens are bought back, and a burn, where tokens are sent to an address that cannot be used. The idea is to lower the supply in circulation, and the rest of the tokens become rarer. It can help resolve this collapse in prices by lowering the market pressure.
According to CoinMarketCap, WLFI shot down to $0.1970 on Friday, after touching a high of $0.33 on September 1. This reduction of 40% triggered the necessity of finding a solution to stabilize the value of the token.
A buyback and burn scheme is intended to accommodate the selling pressure leading to the fall in price. The relocation is also in line with the long-term development of the World Liberty, as it makes the token a rare asset that would require time before its value is appreciated.
Source: WLFI
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Reducing Token Supply to Enhance WLFI’s Value and Liquidity
The project will be financed by liquidity fees of WLFI on Ethereum, BNB Chain, and Solana. The money will be used to buy WLFI tokens on the open market. The tokens will be provided to WLFI and subsequently burnt, ensuring they will not be used again. The project feels this will hold the value of the token because the supply will be reduced.
WLFI says in a proposal that buyback and burn can only affect liquidity, which the project controls. There will not be liquidity pools belonging to third parties or the community.
It is estimated that up to 4 million tokens could be burned each day, potentially reducing the total supply by around 2% annually. But it is not clear how many of these tokens will actually be correspondingly repurchased and burned.
The World Liberty team shall strive to be transparent and will provide updates after every buyback and burn. This initiative is directly related to the recent fall in price and can be considered an attempt by the project to stabilize its token.
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