World Liberty Financial’s community is overwhelmingly supporting a new governance measure to enhance the value of its native token, WLFI.
The proposed measure, introduced recently, aims to use fees collected from protocol-owned liquidity (POL) to repurchase tokens on the open market and permanently remove them from circulation.
The voting process began on Sept. 11 and will continue until Sept. 18, but it has already received significant approval from the community.
Based on governance records, over 99% of votes, representing approximately 1.5 billion WLFI tokens, have favored the measure. Less than 2 million tokens have voted against it, while around 5.8 million tokens have abstained.
Interestingly, analysis of the voting data reveals that only two whale addresses have accounted for more than 56% of the “Yes” votes at the time of this report.
This highlights how whale WLFI holders are heavily influencing the governance vote in their favor.
Given this skewed voting behavior, it is not surprising that the market has not responded positively to the initiative. Data from CryptoSlate indicates that WLFI is currently trading at $0.1992, experiencing a decrease of over 35% since its launch earlier this month.
WLFI’s burn strategy
The buyback program would apply to POL fees earned on Ethereum, Binance Smart Chain, and Solana liquidity pools, while funds from independent liquidity providers would be excluded.
The project leaders have indicated that the initiative could potentially encompass other revenue streams in the future. WLFI’s Dylan stated:
“This is just the initial phase of the deflationary mechanism. Implementing a token burn strategy under a non-inflationary model is a strategic move. WLFI not only integrates multiple deflationary elements but also includes profitable components, all of which are sustainable in the long run.”
Furthermore, proponents of the DeFi project argue that the measure is designed to reduce the circulating supply of WLFI, following a common practice in the blockchain space to enhance long-term value.
By steadily removing tokens from circulation, the plan aims to shift more WLFI into the hands of committed holders rather than short-term speculators.
To kickstart the program, the team recently burned 47 million WLFI tokens valued at over $11 million. These tokens were sourced directly from unlocked Treasury reserves and sent to designated burn addresses, marking a significant milestone in the continuous burn approach.
