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Trump-Backed WLFI Plunges 58% – Buyback Plan Announced to Halt Freefall

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World Liberty Financial (WLFI), the Trump-linked DeFi challenge, is scrambling to cease a market collapse after its token misplaced over 50% of its worth in September.

On Friday, the challenge unveiled a full buyback-and-burn program, directing all treasury liquidity charges to soak up promoting stress. According to a governance put up on X, the neighborhood accredited the plan overwhelmingly, with WLFI pledging full transparency for each burn.

The urgency of the transfer displays WLFI’s steep losses in current weeks. WLFI is buying and selling Friday at $0.19, down from its September 1 peak of $0.46, in accordance to CoinMarketCap, a 58% drop in lower than a month. Weekly losses stand at 12.85%, with a 15.45% decline for the month.

This isn’t the challenge’s first try at intervention. Just days after launch, WLFI burned 47 million tokens on September 3 to counter a 31% sell-off, sending the provision to a verified burn tackle.

For World Liberty Financial, the buyback-and-burn program represents each a damage-control measure and a take a look at of neighborhood religion. While tokenomics changes can present short-term reduction, the challenge will want to persuade buyers that WLFI has endurance past interventions.

WLFI Launches Buyback-and-Burn Plan, Linking Token Scarcity to Platform Growth

According to the governance proposal, WLFI will use charges generated from its protocol-owned liquidity (POL) swimming pools on Ethereum, BNB Chain, and Solana to repurchase tokens from the open market. Once purchased again, the tokens can be despatched to a burn tackle, completely eradicating them from circulation.

WLFI Proposal Source: WLFI

The challenge pressured that this technique ties provide discount straight to platform development. As buying and selling exercise rises, extra liquidity charges are generated, fueling bigger buybacks and burns. This seeks to create a suggestions loop the place adoption drives shortage, and shortage strengthens token worth.

Importantly, the plan applies solely to WLFI’s protocol-controlled liquidity swimming pools. Community and third-party liquidity swimming pools stay unaffected, making certain the mechanism doesn’t intrude with exterior ecosystem contributions.

In its proposal, the WLFI staff argued that the technique aligns long-term holders with the challenge’s future by systematically decreasing provide and discouraging short-term hypothesis. Each burn will increase the relative stake of dedicated buyers, reinforcing confidence in WLFI’s tokenomics.

To bolster credibility, WLFI has pledged full transparency: each buyback and burn can be verifiable on-chain and reported to the neighborhood in actual time.

WLFI Joins Hyperliquid, Jupiter, and Sky as Buyback Craze Spills Into Wall Street

WLFI’s choice to undertake a full buyback-and-burn technique locations it among the many most bold tokenomic fashions in crypto. While partly a response to its sharp September worth decline, the transfer additionally displays a pattern of DeFi protocols leveraging income streams to reduce provide, align incentives, and strengthen token worth.

Hyperliquid illustrates the mannequin at scale. Nearly all of its platform charges are funneled into automated $HYPE buybacks through its Assistance Fund, creating sustained demand.

By mid-2025, more than 20 million tokens had been repurchased, with almost 30 million held by Q3, value over $1.5 billion. This consistency each elevated shortage and cemented Hyperliquid’s dominance in decentralized derivatives.

Other protocols have adopted variations. Jupiter directs half its charges into $JUP repurchases, locking tokens for 3 years.

Raydium earmarks 12% of charges for $RAY buybacks, already eradicating 71 million tokens, roughly 1 / 4 of the circulating provide.

Burn-based fashions push additional, as seen with Sky, which has spent $75 million since February 2025 to completely erase $SKY tokens, boosting shortage and governance affect.

But the buyback phenomenon isn’t restricted to DeFi. Increasingly, listed companies with crypto treasuries are adopting aggressive repurchase programs, generally to offset losses as their digital belongings decline.

According to a report, a minimum of seven companies, starting from gaming to biotech, have turned to buybacks, typically funded by debt, to prop up falling inventory costs.

One of the most recent is Thumzup Media, a digital promoting firm with a rising Web3 footprint. On Thursday, it launched a $10 million share repurchase plan, extending its capital return technique via 2026, after finishing a $1 million program that noticed 212,432 shares purchased at a mean of $4.71.

DeFi Development Corp, the primary public firm constructed round a Solana-based treasury technique, additionally not too long ago expanded its buyback program to $100 million, up from $1 million, making it one of many largest inventory repurchase initiatives within the digital asset sector.

Together, these circumstances present how buybacks, whether or not in tokenomics or equities, are rising as a key mechanism for stabilizing worth and signaling confidence, at the same time as motivations and execution fluctuate broadly.

The put up Trump-Backed WLFI Plunges 58% – Buyback Plan Announced to Halt Freefall appeared first on Cryptonews.

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