The WLFI buyback and burn proposals have just been made public. We promise to turn financial fees into direct purchasing pressure and permanently reduce the supply across the network.
Could WLFI be able to witness a 50% price surge immediately, as the Treasury officially burns tokens to “pour money”?
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Catalyst: WLFI’s “Buyback & Burn”
World Liberty Financial (WLFI) has launched a major proposal. This redirects 100% of the Treasury liquidity costs to a market purchase WLFI token, burning permanently across multiple chains. In fact, this route fee – market-by-permanent burn approach is a well-known catalyst used in projects such as hype, pumps, tons.
From an economic standpoint, buyback and burns are effective deflation mechanisms. The “automatic” demand generated by protocol activities (liquidity charges) buys tokens on the spot, and combustion permanently reduces the total supply. As a result, prices could rise, assuming demand remains stable or rise.
However, its full impact depends on two important factors. The amount of fees collected by the Ministry of Finance and the frequency/timeline of buybacks. The impact of buybacks is limited if daily/weekly fees are still small compared to market liquidity. Conversely, if the Ministry of Finance generates a large, consistent fee flow, the mechanism can have a significant effect.
If approved and implemented, this buyback and burning mechanism will help revive WLFI prices, which have fallen significantly following governance risks and centralisation concerns. Since the launch, the controversy over Justin San has caused WLFI prices to drop sharply. At the time of writing, the WLFI is trading at $0.1996, down 40% from the previous ATH.
However, implementing a buyback mechanism does not help raise the price of the token. Some analysts argue that cryptocurrency buybacks are viewed as value-destructive rather than creating value. They burn revenue that can drive growth through product development and user acquisition.
The emerging regulatory dynamics and mature industries need to focus on building transparent and efficient tokens for long-term investors. These tokens should act as on-chain equity and promote sustainable value over time.
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“The market doesn’t need any more buybacks. It requires productive tokens and patience,” the founder of Moonlock commented.
Technology view
From a technical analysis perspective, some X analysts note that WLFI is currently down and may be approaching its bottom. Price action suggests a sharp reversal could be imminent, with a potential rise of up to 50%, with a target of $0.26.
In another analysis, we observed that X users were testing Point of Control (POC) value zones after they escaped from the bearish channel that had fallen in the low time frame.
“A strong breakout on top of this POC can cause short-term gatherings of 30-40%, and an increase in volume will confirm momentum. Cryptobull said.
All of these observations suggest that the inversion may be very close. However, WLFIs must ensure a closely observed closeness beyond key resistance and sustained trading volume to verify this move.
Furthermore, while the burn mechanism is attractive, the market’s trust in governance (the way that manages the Treasury that signs buyback transactions and reports are published transparently) largely determines its long-term effectiveness.
