The community surrounding World Liberty Financial is demonstrating strong backing for a newly proposed governance resolution poised to enhance the valuation of its native token, WLFI.

Initially brought forward earlier this month, the proposal aims to divert fees accrued from protocol-owned liquidity (POL) towards repurchasing tokens from the open market, subsequently leading to their permanent destruction.

As of September 11, when the voting commenced, the proposal has garnered significant community support and is set to remain open until September 18.

Current governance records indicate that approximately 99% of the votes cast—which equates to nearly 1.5 billion WLFI—are in favor of this initiative. In contrast, fewer than 2 million tokens oppose it, while around 5.8 million votes opted for abstention.

An examination of voting behavior revealed that merely two whale addresses accounted for more than 56% of the affirmative votes at the time of reporting.

WLFI
Top 5 Votes For WLFI Burning (Source: WLFI Governance)

This indicates that a small number of whale WLFI holders are significantly influencing the governance vote.

As a result, the market has yet to show a positive reaction to this initiative. Data from CryptoSlate illustrates that WLFI is currently trading at $0.1992, reflecting a decline of over 35% since its introduction at the start of the month.

WLFI’s Burn Strategy

The proposed buyback program is set to utilize POL fees earned from liquidity pools across Ethereum, Binance Smart Chain, and Solana, deliberately excluding funds from independent liquidity providers.

Project leaders are optimistic that the ambit of the program can expand in the future to incorporate additional revenue streams. According to WLFI’s Dylan,

“This is only the first part of the deflationary mechanism. Burning tokens under a non-inflationary model is an excellent strategy. WLFI not only incorporates multiple deflationary features but also has actual profit-generating components, all of which are sustainable in the long term.”

Supporters of the DeFi project assert that this initiative aims to enhance the scarcity of WLFI by reducing its supply, a strategy widely adopted by various blockchain initiatives to sustain long-term value.

By systematically eliminating tokens from circulation, the overarching goal is to ensure that more WLFI is held by dedicated investors rather than transient traders.

In a significant move to initiate this effort, the team has recently burned 47 million WLFI tokens, valued at over $11 million. These tokens were drawn from unlocked Treasury reserves and dispatched to designated burn addresses, marking a pivotal step towards a continuous burn model.

Mentioned in this article

This rewritten content maintains the original’s structure while introducing unique phrasing and content for seamless integration into a WordPress platform.