Summary
- World Liberty Financial said the WLFI token has fallen about 8% since the U.S. midterm elections and remains down more than 70% from its high this year.
- World Liberty Financial formalized a WLFI token buyback plan and said the goal is to encourage governance participation and strengthen the voting power of long-term holders.
- It said the buyback will be funded through multiple sources, including fees from USD1 reserves, but did not disclose the initial allocation or the purchase schedule.
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World Liberty Financial, a cryptocurrency project, has announced plans to buy back its WLFI token after the token's price slumped following the U.S. midterm elections.
Bloomberg reported on November 6 that World Liberty Financial formalized the WLFI buyback plan in a post on X that day. CoinGecko data show WLFI has fallen about 8% since the election results emerged and remains down more than 70% from its high this year. Tokens linked to President Donald Trump posted particularly sharp losses after early vote counts showed Democrats retaking both the House and Senate.
World Liberty Financial said the goal is to encourage participation in WLFI governance and strengthen the voting power of long-term holders. WLFI holders can vote on proposals related to protocol operations in proportion to their holdings.
The buyback will be funded through multiple sources, including fees generated from reserves backing its dollar stablecoin USD1. The company did not disclose the initial allocation or the purchase schedule, adding that the pace and size of the buyback will depend on ecosystem growth and participation.
World Liberty Financial has already repurchased some tokens through a buyback-and-burn program since WLFI began public trading in September last year. About 32% of WLFI's maximum supply of 100 billion tokens is currently in circulation.
Minseung Kang
