World Liberty Financial has made headlines by committing $10 million to buy back WLFI tokens, acquiring approximately 59 million tokens through the CoW Swap decentralized exchange (DEX). This strategic move is part of a broader buyback initiative designed to bolster the token”s value and restore investor confidence.
The recent buyback follows an earlier purchase on October 10, where the company spent around $9 million to acquire nearly 51 million WLFI tokens. Despite the significant investment, WLFI remains 50% below its all-time high, reflecting ongoing challenges in attracting investor interest.
The buyback program is underpinned by a governance proposal ratified in September, permitting the use of protocol fees to repurchase and subsequently burn WLFI tokens. This approach is intended to strengthen community trust and align the interests of token holders with the overall performance of the protocol.
World Liberty Financial, which describes itself as a decentralized finance (DeFi) protocol, offers a range of services, including lending, borrowing, and asset exchange through its USD1 stablecoin. While token holders can participate in governance decisions, the project does not formally operate as a decentralized autonomous organization (DAO).
The company”s decision to ramp up its buyback program comes at a time when similar strategies are gaining traction among various DeFi protocols. Recent reports indicate that the top 12 revenue-distributing DeFi projects collectively spent nearly $800 million on token buybacks and revenue-sharing initiatives in July, marking a significant increase from earlier in the year. Analysts suggest that such buybacks serve as a long-term commitment signal, aligning holder incentives with the growth of the protocol, akin to share repurchases in traditional finance.
Despite the immediate results of the buyback program being limited, World Liberty Financial”s ongoing efforts aim to foster community trust and support the project”s treasury. The initiative is expected to reinforce the perceived value of WLFI, with the hope that the structural impact of these purchases will lead to sustainable growth and a clearer alignment between protocol performance and investor interests.
In addition to its buyback activities, the project has drawn attention following a report from “60 Minutes” linking a $2 billion deal between Binance and Abu Dhabi”s MGX to the recent presidential pardon of former Binance CEO Changpeng Zhao. Critics have voiced concerns that this deal artificially inflated the value of USD1 ahead of the pardon, although these allegations have been firmly dismissed by Binance and the involved legal representatives.
