WLFI has proposed a revolutionary new governance proposal that would allocate all fees generated from protocol-owned liquidity (POL) to open market buybacks and permanent token burns of the WLFI token. This initiative aims to lower the circulating supply and boost the value of WLFI for its holders. 100% of POL fee revenue will be directed towards these buyback and burn activities, with the aim of making the token more scarce over time.
The proposal focuses solely on fees collected by the protocol’s liquidity pools and excludes any fees generated by community-owned or third-party liquidity providers. This measure ensures fairness across all participants within the decentralized ecosystem.
This innovative approach aligns with a growing trend in DeFi, where protocols actively manage tokenomics to create sustainable long-term value. Token burns, especially those backed by real revenue generation, are often seen as strong indicators of project health and commitment to sustainability. By implementing this burn model, WLFI aims to establish consistent demand through open market buybacks, potentially boosting confidence in the project’s future growth.
Supporters believe this initiative could prove to be a powerful driver of value for both current and prospective holders. If approved, this proposal could become a landmark in DeFi, setting a new standard for long-term deflationary strategies.