World Liberty Financial (WLFI) has proposed a novel way to manage its token supply – using 100% of protocol-generated liquidity fees to buy back and permanently burn WLFI tokens. This strategy aims to reduce the circulating supply, reward long-term holders, and stabilize market value. The proposal comes after WLFI’s price suffered a significant decline following launch, prompting the team to implement a proactive buyback and burn mechanism. The plan involves repurchase of WLFI tokens from the open market using fees collected from protocol liquidity, followed by burning them on Ethereum, BNB Chain, and Solana. This approach directly impacts token supply, while excluding any contributions from third-parties or community-based liquidity sources. The proposal was developed as part of a broader strategy to manage token weight towards long-term holders rather than short-term sellers, aiming to increase ownership among those committed to the project’s vision. However, some community members expressed concerns regarding the absence of a contingency plan in case of emergency funding requirements. A lack of clarity about exact fee amounts and the potential impact of these burns also raised questions. Despite this, most community members have supported the proposal, with many expressing optimism for its long-term success.