WLFI Proposes 100% POL Fees for Token Buybacks & Burns
WLFI may burn more tokens by using all POL fees for open market buybacks to reduce circulating supply.
- WLFI proposes using all POL fees for token buybacks and burns.
- The plan excludes third-party and community LP-generated fees.
- Aim is to lower the circulating supply and boost WLFI value.
The WLFI community has introduced a new governance proposal that could significantly alter the token’s economic model. The idea is simple but bold — allocate 100% of the protocol-owned liquidity (POL) fees toward open market buybacks and permanent burns of the WLFI token.
By directing all POL revenue toward buybacks, WLFI aims to continuously reduce the circulating supply of its token. This deflationary move is expected to drive value back to holders, making the token more scarce over time.
It’s important to note that this initiative only applies to liquidity pools directly controlled by the protocol. Any fees earned by community-owned or third-party liquidity providers are excluded from this proposal, maintaining fairness across decentralized participants.
A Long-Term Value Strategy
This proposal aligns with a growing trend in the DeFi space where protocols take a more active role in managing tokenomics to create long-term value. Token burns, especially those backed by real revenue, are often viewed as a strong indicator of project health and commitment to sustainability.
Supporters believe this move could help increase trust in WLFI by creating consistent demand through open market buybacks. Moreover, since the purchased tokens will be permanently removed from circulation, the impact is likely to compound over time.
If passed, the proposal will also serve as a live experiment for other protocols considering similar use of POL income to enforce a deflationary strategy.
What’s Next for WLFI Holders?
Community members are currently reviewing the proposal and voting outcomes will determine whether the burn model becomes policy. If approved, WLFI could join a growing list of DeFi protocols using buybacks and burns as a key lever for long-term growth.
For current and potential holders, this is a development worth watching. Reduced supply could mean increased demand — and possibly, higher value.
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