The WLFI buyback and burn proposal has just been announced. It promises to turn treasury fees into direct buying pressure and permanently reduce the supply across the network.
Will WLFI soon see a 50% price increase as the treasury officially “pours money” into buying and burning Token forever?
Catalyst: 'Buyback & Burn' on WLFI
World Liberty Financial (WLFI) has just launched a major proposal : redirecting 100% of its treasury liquidation fees to buy WLFI Token on the market and permanently burning them across multiple chain. In fact, this fee-buy-market-permanent-burn approach is a well-known catalyst used by projects like HYPE , PUMP , and TON .
From an economic perspective, buybacks and burns are an effective deflationary mechanism. The “automatic” demand created by protocol activity ( liquidation fees) will buy Token on the spot market, and the burn will permanently reduce the total supply. As a result, assuming demand remains stable or increases, the price can be adjusted upward.
However, its full impact depends on two key factors: the amount of fees collected by the treasury and the frequency/timing of the buybacks. The impact of buybacks will be limited if daily/weekly fees remain small relative to market liquidation . Conversely, this mechanism can be highly effective if the treasury generates a large and stable fee stream.
WLFI Proposal Voting Rate. Source: WLFIIf approved and implemented transparently, this buyback and burn mechanism could help revive the price of WLFI, which has been hit hard by governance risks and concerns about centralization. Since its launch, the controversy surrounding Justin Sun has caused a sharp drop in WLFI’s price. At the time of writing, WLFI is trading at $0.1996 , down 40% from its previous high.
However, implementing a buyback mechanism will not help increase Token prices. Some analysts argue that cryptocurrency buybacks are considered value-destroying rather than value-creating. They burn through revenue that could have fueled growth through product development and user acquisition.
With regulatory changes emerging and the industry maturing, the focus should be on building transparent, efficient Token for long-term investors. These Token should act as on- chain shares, driving sustainable value over time.
“The market doesn’t need more buybacks. It needs valuable Token and patience,” the Moonrock founder commented .
Technical perspective
From a technical analysis perspective, some analysts on X note that WLFI is currently in a Falling Wedge pattern and could be nearing a Dip. The price action suggests that a strong reversal could be imminent, with upside potential of up to 50%, targeting $0.26.
WLFI Price Action. Source: Smith on XIn another analysis, a user on X observed that WLFI is testing the Point of Control (PoC) value zone after breaking out of the bearish channel on lower timeframes.
“A strong breakout above this PoC could trigger a short-term 30–40% rally, with increased volume confirming the momentum — something to watch closely!” CryptoBull said .
WLFI price action on 1H chart. Source: CryptoBull on XThese observations all suggest that a reversal could be very close. However, WLFI still needs to secure a confirmed close above key resistance and sustained volume to confirm this move.
Furthermore, while the burn mechanism is attractive, market confidence in governance (who controls the treasury, who signs the buyback transactions, and how transparently the burn reports are published) will largely determine its long-term effectiveness.
