In summary
- The repurchase plan would redirect 100% of the rates of the liquidity pools owned by the protocol in Ethereum, BSC and Solana.
- The proponents claim that linking the rates to the tokens burns increases the shortage and increases the long -term value for the holders.
- Analysts warn that the effect can be limited by the next unlocks and the high assessment of WLFI.
Less than a day through its debut on Labor Day, Token Wlfi Wlfi Wlfi fell sharply as the commercial volume increased almost ten times.
The government token fell from a maximum of $ 0.33 to almost $ 0.21 in Monday’s negotiation before resolving around $ 0.245, with a negotiation volume by increasing approximately $ 259 million to the launch of $ 2.5 billion, according to data Coingcko.
Wlfi is down Approximately 14% of its debut price of $ 0.28, but remains significantly higher for early white buyers who acquired tokens in around $ 0.015 each.
In the light of recent developments, a government proposal has appeared, asking that all liquidity rates of the project groups are heading to permanent repurchases and burns.
Published in the Project Government Forum, the proposal Its objective is to redirect all liquidity rates owned by the protocol in Ethereum, BSC and Solana in WLFI purchases of open market, which are then sent to a burning address, thus permanently reducing the supply.
If approved, WLFI would raise rates of their own liquidity positions in Ethereum, BSC and Solana, would use them to buy tokens on the market and send the tokens bought from a burning address.
The proposal describes this as a measure for the “reduction of direct supply” that would effectively increase the “relative weight for long -term compromised holders.” It also links the mechanism with the activity of the network, stating that “more use = more tariffs = more burned wlfi”.
However, analysts say that the effect can be less decisive when weighing against Wlfi’s broader token economy.
“While the repurchase and burning model can provide structural support for the price of the token, its general impact can be limited given the great implicit assessment of WLFI and the relatively low circulation supply,” said Min Jung, a senior analyst of the quantitative trade firm, said, said Decipher.
Jung points out that supply pressures can also exceed the impact of the proposal.
“It is likely that the scale of the next unlocks exceeds the amount of the repurchase, and with few live products that currently drive organic demand, the long -term effect on prices stability remains uncertain,” Jung explained.
The WLFI approach reflects the tactics of the shareholders of the most common shareholders in mature companies than in companies in the growth stage, said Jung.
“In traditional markets, companies with high growth generally reinvote profits instead of prioritizing repurchases or dividends,” he explained. “Assigning all liquidity rates exclusively to burns could limit WLFI flexibility to finance products development, ecosystem incentives or strategic investments.”
But given the scale of WLFI fund collection, the treasure can still be “enough to support future growth,” he added.
To echo that feeling, Ryan Yoon, a senior analyst of Tiger Research, said Decipher The repurchase mechanism “theoretically should admit the value of the token through the reduction of the offer.”
WLFI currently lacks “operational services beyond the provision of basic liquidity”, which could result in a minimal generation of rates, Yoon said.
Positioned as a decentralized financial project, World Liberty Financial was designed as a loan and loan service, although its main platform has not yet been launched.
The company backed by Trump has already launched a stablecoin, with a dollar, USD1which is currently located as the largest sixth for market capitalization, according to Coingecko data.
The project was co -founded by nine individuals, including the president of the United States, Donald Trump, his three children and the special envoy of the United States to the Middle East Steven Witkoff, according to his website.
In July, Trump revealed that he had won a Unexpected profit of $ 57.3 million of the company. Along with his Meme coins offers and a exclusive dinner In April, the president’s links with cryptography have caused controversy in Washington, with some possible legislators conflicts of interest.
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