World Liberty Financial’s community is coming together to support a new governance measure aimed at enhancing the value of its native token, WLFI. The proposal, introduced recently, aims to utilize fees collected from protocol-owned liquidity (POL) to repurchase tokens on the open market and permanently remove them from circulation.
The voting process for this proposal began on Sept. 11 and will continue until Sept. 18. However, the response from the community has been overwhelmingly positive, with more than 99% of votes, representing approximately 1.5 billion WLFI, in favor of the measure. Only a small number of tokens have been cast against it, with a significant portion choosing to abstain.
Interestingly, analysis of the voting pattern has revealed that only two whale addresses hold over 56% of the “Yes” votes as of now. This indicates that a few large holders are influencing the governance vote in their favor.
Despite the strong community support, the market has not responded positively to the proposal. Current data shows that WLFI is trading at $0.1992, a decrease of over 35% since its launch earlier this month.
The proposed burn strategy would involve using POL fees from Ethereum, Binance Smart Chain, and Solana liquidity pools to repurchase and burn tokens. This initiative is aimed at making WLFI scarcer by reducing its supply, a common tactic used by blockchain projects to increase long-term value.
The project leaders have indicated that the scope of the buyback program could expand to include other revenue streams in the future. Dylan, a key member of the WLFI team, emphasized the importance of incorporating deflationary mechanisms to sustainably enhance the token’s value.
To kickstart the burn program, the team recently destroyed 47 million WLFI tokens, equivalent to over $11 million. These tokens were sourced from the project’s Treasury reserves and sent to designated burn addresses, marking the initial step towards implementing the continuous burn model.
Overall, the community-driven initiative to strengthen WLFI’s value through token burning reflects a commitment to long-term sustainability and value creation. As the project continues to evolve, it will be interesting to see how these governance measures shape the future of World Liberty Financial and its native token.