The post WLFI Token Falls on Debut as Governance Weighs Liquidity Fee Buyback Plan appeared on BitcoinEthereumNews.com.

In brief The buyback plan would redirect 100% of fees from protocol-owned liquidity pools across Ethereum, BSC, and Solana. Proponents claim that linking fees to token burns enhances scarcity and boosts long-term value for holders. Analysts caution the effect may be limited by upcoming unlocks and WLFI’s high valuation. Less than a day through its Labor Day debut, World Liberty Financial’s WLFI token fell sharply as trading volume swelled nearly tenfold. The governance token dropped from a high of $0.33 to near $0.21 in late Monday trading before settling at around $0.245, with trading volume increasing from approximately $259 million at launch to $2.5 billion, according to data from CoinGecko. WLFI is down approximately 14% from its debut price of $0.28, but remains significantly higher for early whitelisted buyers who acquired tokens at around $0.015 each. In light of recent developments, a governance proposal has appeared, calling for all liquidity fees from the project’s pools to be directed toward buybacks and permanent burns.  Posted on the project’s governance forum, the proposal aims to redirect all fees from protocol-owned liquidity on Ethereum, BSC, and Solana into open-market WLFI purchases, which are then sent to a burn address, thereby permanently reducing the supply. If approved, WLFI would collect fees from its own liquidity positions on Ethereum, BSC, and Solana, use them to buy tokens back on the market, and send the purchased tokens to a burn address. The proposal describes this as a measure for “direct supply reduction” that would effectively increase “relative weight for committed long-term holders.” It also links the mechanism to network activity, stating that “more usage = more fees = more WLFI burned.” However, analysts say the effect may be less decisive when weighed against WLFI’s broader token economics. “While the buyback-and-burn model can provide structural support for the…

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Filed under: News - @ September 3, 2025 12:30 am