Quick Highlights
- WLFI buyback and burn plan aims to reduce token supply.
- Fees from liquidity pools fund the repurchase of WLFI.
- Long-term holders may benefit from price stabilization.
WLFI Token Buyback and Burn: How It Works
World Liberty Financial has proposed a new buyback and burn mechanism for the WLFI token. The plan involves using 100% of liquidity fees (POL) to repurchase WLFI tokens on the open market. These tokens will then be sent to a burn address, gradually reducing the total supply.
The team believes this strategy will not only support token price stabilization but also reward long-term holders by redistributing supply in their favor. Additional sources of protocol income may be considered to strengthen the program.
Impact on Token Supply and Investor Benefits
By implementing a deflationary mechanism, WLFI aims to create sustainable growth and reduce excess circulating supply. Transparency is a priority: all buyback and burn transactions will be publicly recorded.
The effectiveness of the program will increase as more users interact with the protocol, directly contributing to WLFI’s long-term stability.
Community feedback on the proposal has been largely positive, though a voting date has not yet been announced. WLFI was initially non-tradable, and a community vote eventually allowed its release on major exchanges.
Experts anticipate that the buyback and burn mechanism could stabilize prices while rewarding early adopters and long-term investors.
If successful, this program could create one of the most sustainable deflationary mechanisms in the crypto market today. Investors may see long-term value appreciation as the circulating supply gradually decreases.
Source: https://coinpaper.com/10839/wlfi-token-s-deflationary-plan-could-spark-price-surge-here-s-how
