TL;DR
- World Liberty Financial spent $10 million buying 59 million WLFI tokens, intensifying its buyback program to support the token’s value.
- The initiative uses protocol fees to repurchase and burn WLFI, although the token remains 50% below its all-time high.
- The buyback aims to strengthen community trust and align holder incentives.
World Liberty Financial, the crypto project backed by the Trump family, is stepping up its WLFI token buyback program to bolster investor confidence and maintain the token’s value.
In the past 12 hours, the company spent $10 million purchasing over 59 million WLFI tokens via the CoW Swap DEX, according to on-chain records. This follows a previous buyback on October 10, when nearly 51 million tokens were acquired for around $9 million.
Buybacks Gain Momentum Among DeFi Protocols
The initiative is part of a governance proposal approved in September, allowing the protocol to use fees generated from its operations to repurchase and burn WLFI. Between October and March, World Liberty sold 35 billion WLFI tokens to investors for a total of $550 million. Despite these purchases, investor interest has been limited: the token rose just 0.4% in the past 24 hours and remains down 50% from its September all-time high.
World Liberty defines itself as a DeFi protocol offering lending, borrowing, and asset exchange services through its USD1 stablecoin. Although holders can participate in protocol decisions, it does not formally identify as a DAO.
The project gained additional attention this month after a 60 Minutes report linked a $2 billion deal between Binance and Abu Dhabi’s MGX to the recent presidential pardon of Changpeng Zhao, former Binance CEO. Critics claimed the deal boosted USD1 ahead of the pardon, allegations dismissed by Binance and the lawyers involved.
World Liberty Seeks to Align Ecosystem and User Incentives
The buyback program follows a growing trend among DeFi protocols. Reports from Keyrock show that the top 12 revenue-distributing DeFi projects spent nearly $800 million on token buybacks and other revenue-sharing activities in July, a more than 400% increase from early 2024. Analysts note that buybacks serve as a long-term commitment signal and help align holder incentives with protocol growth, similar to share repurchases in traditional companies.
Although immediate results have been limited, World Liberty continues to pursue this strategy to maintain community trust, support the project’s treasury, and reinforce WLFI’s perceived value. The company aims for token purchases to create a structural effect within the ecosystem, ensuring sustainable growth and clear alignment between protocol performance and investor interests
