WLFI Proposes 100% POL Fees for Token Buybacks and Burns

TLDR:

• WLFI plans to use 100% of protocol-owned liquidity fees for token buybacks and permanent burns starting in 2027.
• The proposal directs all treasury liquidity fees exclusively into buybacks instead of splitting funds across other uses.
• Tokens bought from fees would be burned, reducing circulating supply and tying fee revenue to token stability.
• Community members are reviewing the plan, with a vote expected after further governance discussions on the WLFI forum.

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Crypto projects are rethinking how they handle treasury flows. Some aim to lock in stability, while others chase aggressive growth. WLFI has now tabled a proposal that may reshape its token model. 

The plan calls for a new approach to treasury fees, steering them directly into market activity. Investors are watching closely as the community weighs the move.

WLFI Treasury Liquidity Fees to Fund Token Buybacks

According to governance documents, WLFI proposed using 100 percent of its protocol-owned liquidity (POL) fees for token buybacks. 

This plan would retire the purchased tokens permanently through burns, reducing circulating supply. The governance forum outlined that all treasury liquidity fees would fall under this allocation.

The shift marks a change from mixed-use treasury spending. Instead of splitting fees across operations or reserves, the community would focus entirely on supporting the token. Buybacks would come from the liquidity fees already collected, ensuring that no outside funding is required.

Wu Blockchain reported the development, noting that the governance discussion gained traction among participants. 

While no final decision has been made yet, the outlined framework is already shaping expectations. A vote will follow in the coming stages if the proposal advances through discussion.

For holders, the plan suggests a more direct feedback loop between protocol revenue and token supply. By burning bought-back tokens, WLFI aims to create a deflationary mechanism linked to treasury inflows.

How the Proposal Connects Fees, Price, and Crypto Stability

Under the proposed system, treasury liquidity fees become the only driver of the buyback-and-burn process. That means every fee collected translates into a scheduled purchase of WLFI tokens on the open market. 

The purchased tokens would then be sent to a burn address, removing them from circulation.

This mechanism aligns the project’s financial flows with token supply pressure. It also introduces a transparent path for investors to see how fees connect to market dynamics. 

The governance forum post explained that this method avoids dilution and prioritizes token stability over discretionary spending.

Market watchers say the change could influence WLFI’s token price, though the outcome will depend on trade volumes and liquidity levels. Since all fees would be directed at the buyback pool, the pace of burns will track usage. That ties demand for protocol services to the rate of token reduction.

According to the proposal, the system is planned to begin in 2027, with initial data collection starting next year. This timeline allows the community to measure how much liquidity revenue is generated before the mechanism goes live.

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