September 13th• 3 min read
WLFI Burn Proposal Wins 99% Approval as Community Backs Deflationary Strategy
World Liberty Financial's community has overwhelmingly approved a governance proposal to implement continuous token burns using protocol fees, marking a major shift toward deflationary tokenomics.
Key takeaways
🗳️ Community Decision: WLFI holders voted 99.48% in favor of using all protocol-owned liquidity fees for token buybacks and burns.
🔥 Deflationary Model: The approved mechanism will permanently remove WLFI tokens from circulation, reducing supply over time.
💰 Fee Structure: Only fees from WLFI-controlled liquidity pools on Ethereum, BNB Chain, and Solana will fund the burns.
📈 Market Response: Despite the approval, WLFI price remains stable around $0.20 with $480M daily trading volume.
⚖️ Governance Power: Two whale addresses control 56% of voting power, raising centralization concerns.
Deep dive
World Liberty Financial's community has delivered a decisive mandate for deflationary tokenomics, with 99.48% of voters approving a proposal to direct all protocol-owned liquidity fees toward WLFI token buybacks and permanent burns.
The mechanism will operate continuously across Ethereum, Binance Smart Chain, and Solana, removing tokens from circulation to theoretically boost scarcity and value for remaining holders.
While the proposal garnered overwhelming support with over 1.3 billion votes cast, concerns remain about governance centralization, as just two whale addresses control 56% of the voting power.
The market has yet to respond dramatically to this development, with WLFI trading steady around $0.20 despite the deflationary promise.
The burn program represents World Liberty Financial's attempt to restore investor confidence following the token's volatile launch, where it dropped over 30% from initial highs amid manipulation allegations and whale selling pressure.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
