TLDR:

• World Liberty Financial (WLFI), a Trump family-backed DeFi project, will launch a token buyback and burn program this week.

• WLFI tokens fell 41% in September, dropping from $0.33 to $0.19.

• The move follows a community governance vote, which passed with 99% approval.

• Fees from liquidity positions on Ethereum, BNB Chain, and Solana will fund the buybacks.

• Tokens will be permanently burned, reducing supply to stabilize price.

On Friday, World Liberty Financial revealed plans for a WLFI buyback and burn program designed to stabilize its token price after a sharp decline in September.

The team confirmed the initiative via X, stating: 

The token was trading at $0.19, down 41% from its early September high of $0.33.

Why a Buyback and Burn?

In crypto, buyback and burn programs function much like share buybacks in traditional finance, but with a twist.

• Buyback: The project uses treasury funds or fees to purchase tokens from the open market.

• Burn: Purchased tokens are sent to a "burn address," making them permanently inaccessible.

This reduces circulating supply. With fewer tokens available, the project hopes to support price stability and boost long-term value.

"Every trade will remove WLFI from circulation," the team wrote in its proposal. 

Community Governance Backing
The decision wasn't unilateral. World Liberty put the mechanism up for a community vote, and it passed overwhelmingly with 99% approval (proposal link).  

The proposal outlined that fees generated from WLFI liquidity pools across Ethereum, BNB Chain, and Solana would be collected. Instead of being recycled into rewards, these fees will now be used to buy back WLFI, which will then be burned.
Supporters argued this was a necessary step to restore confidence after September's price slide.

Trump Connection: A Political Backing in Crypto

World Liberty Financial has been in the spotlight not only for its DeFi ambitions but also for its political connections. The project was launched with the backing of the Trump family, branding itself as a decentralized finance platform that aligns with Trump's pro-crypto stance during his second presidential campaign.

While Trump himself has not been directly involved in the day-to-day, the association has boosted WLFI's visibility. The former president previously signaled support for crypto-friendly regulation, making the project a natural extension of his broader narrative around financial independence.

Tokenomics and Supply Strategy

As of now, WLFI's supply dynamics are crucial to understanding the buyback plan:

• Total supply: Not capped, but governed by tokenomics tied to liquidity and fees.
• Burn mechanism: New model ensures supply decreases with every buyback.
• Liquidity: Spread across Ethereum, BNB Chain, and Solana.
  

By removing tokens permanently from circulation, WLFI is leaning into the deflationary model many projects use to offset selling pressure.

September's Price Collapse

WLFI's token price drop wasn't isolated. Broader market volatility in September saw several DeFi tokens lose double digits, though WLFI's 41% decline stood out.

Several factors contributed:

• Profit-taking after its all-time high in early September.
• Broader DeFi market weakness.
• Lack of clarity on utility growth beyond speculation.

This created urgency for WLFI to take corrective measures, leading to the governance vote and subsequent buyback announcement.

Final Thoughts

World Liberty Financial's buyback and burn program marks a pivotal moment for WLFI and its holders. Backed by Trump's political brand and community governance, the project is trying to send a strong signal of accountability and long-term commitment. But whether this mechanism alone can restore confidence remains uncertain. As history has shown, tokenomics strategies work best when paired with genuine adoption, utility, and strong community engagement.

For now, WLFI holders are watching closely - and waiting to see if supply cuts can truly balance the scales after September's sharp downturn.