World LibertyFi (WLFI) confirmed that its community voted to direct 100% of Treasury Liquidity Fees into a buyback-and-burn program. The proposal, introduced on September 12, received near-unanimous support and applies to WLFI’s protocol-owned liquidity (POL) across Ethereum (ETH), BNB Chain (BNB), and Solana (SOL).
The proposal voting results are as follows:
- Votes in Favor: 4.4 billion (99.84%)
- Votes Against: 0.06%
- Quorum Reached: 443% of the required threshold
The plan means that all fees generated from these WLFI-controlled pools will be used to purchase WLFI tokens from the open market and permanently remove them from circulation. The initiative excludes fees from community or third-party liquidity providers.
The measure is now set to be implemented this week, with all buyback-and-burn transactions to be published on-chain for transparency.
How the Buyback-and-Burn Works
The buyback-and-burn mechanism channels Treasury Liquidity Fees directly into reducing circulating supply. Its main features are:
- Fee Collection: Fees are gathered from WLFI-controlled liquidity pools on Ethereum, BNB Chain, and Solana.
- Open-Market Buybacks: Collected fees are used to purchase WLFI tokens from the open market.
- Permanent Burns: Purchased tokens are sent to a burn address, permanently removing them from supply.
- On-Chain Transparency: All actions are recorded on-chain for community verification.
By focusing only on POL, the program ensures community or third-party pools remain unaffected.
Rationale Behind the Proposal
WLFI’s team highlighted that the initiative directly connects protocol activity with token value. The main objectives include:
- Supply Reduction: Continuous burns ensure the supply shrinks in direct proportion to trading activity.
- Holder Alignment: Long-term holders benefit as passive tokens are permanently removed.
- Activity Incentives: More trades generate more fees, resulting in more frequent burns.
- Accountability: Every step of the process remains visible on-chain.
Community discussions had weighed alternatives, including splitting fees between operations and the Treasury. In the end, the community favored a full burn model, prioritizing measurable supply reduction.
Technical Implications
Rolling out the proposal involves several technical and operational considerations:
- Multi-Chain Execution: The buyback-and-burn will function across Ethereum, BNB Chain, and Solana.
- Manual Implementation: Transactions will be executed manually by the WLFI team to retain control while maintaining on-chain proof.
- Liquidity Protections: Only POL-generated fees will be used, leaving community and third-party pools untouched.
- Future Expansion: This initiative may expand to other WLFI revenue streams, depending on community input.
The approach aligns with wider trends in tokenomics, where deflationary mechanics and protocol-owned liquidity are increasingly seen as tools for sustainable design.
Debit Card and Retail App Plans
The announcement follows news that WLFI is preparing to launch a debit card linked to Apple Pay and a retail app for peer-to-peer payments and trading.
Co-founder Zak Folkman confirmed the plans at Korea Blockchain Week 2025, describing the retail app as “like Venmo meets Robinhood.”
Key features include:
- Debit Card: Apple Pay integration with WLFI’s USD1 stablecoin for everyday purchases.
- Retail App: Combines peer-to-peer payments, trading tools, and USD1 integration.
- Chain-Agnostic Strategy: No plans to launch a proprietary blockchain, maintaining interoperability with Ethereum, BNB Chain, Solana, and others.
WLFI launched in September 2024 with two core tokens:
- WLFI: The project’s native cryptocurrency.
- USD1**:** A stablecoin designed to bridge traditional finance and crypto.
WLFI’s token has seen volatility since its debut. The token is down 15% in 30 days, according to CoinMarketCap.
The buyback-and-burn initiative introduces a deflationary mechanism at a time when market conditions remain challenging.
Conclusion
The World LibertyFi community’s approval to use 100% of Treasury Liquidity Fees for buyback and burn marks a clear alignment between protocol activity and tokenomics. By focusing on supply reduction, transparency, and multi-chain integration, the initiative sets a technical foundation for WLFI’s next phase.
While its impact on long-term value remains uncertain, the decision ensures that community-controlled governance continues to shape WLFI’s development in measurable and verifiable ways.
Resources:
- World LibertyFi X platform:
- World Liberty Financial recent proposal:
- $WLFI Token Details:
- World Liberty Financial to launch debit card ‘very soon,’ co-founder Zak Folkman says - report by The Block:
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.