CoinDesk
World Liberty Financial plans further purchases of its WLFI token after its price fell more than 66% this year and about 10% following the U.S. midterm elections. The Trump family-backed venture said it may use fees from reserves backing its USD1 stablecoin, alongside other sources, to fund the buybacks.
Why it matters
World Liberty said the plan is intended to encourage governance participation and increase voting power for committed long-term holders. It intends buybacks to be an ongoing part of its strategy, with their pace and scale guided by ecosystem growth and the effect on governance participation.
The proposed purchases would continue an existing program. In April, the company disclosed $65.6 million in open-market WLFI buybacks over the preceding six months.
Market impact
WLFI's latest decline followed an election in which Republicans performed worse than expected. The TRUMP memecoin and Trump Media shares also hit record lows.
The venture faces a separate legal dispute with Tron founder Justin Sun, who said he had asked a federal court to sanction World Liberty in his lawsuit over roughly 4 billion frozen WLFI tokens.
Frequently asked questions
-
How could World Liberty finance further WLFI purchases?
The venture said it may use fees earned from reserves backing its USD1 stablecoin, along with other sources.
-
What governance goal does the buyback plan serve?
World Liberty says it wants to encourage more active governance participation and increase voting power for committed long-term holders.
-
How much WLFI did World Liberty previously buy?
In April, the company disclosed $65.6 million in open-market WLFI buybacks over the preceding six months.
-
What will guide the pace and scale of future purchases?
World Liberty says ecosystem growth and the impact on governance participation will guide the pace and scale of buybacks.
-
What is Justin Sun seeking in his dispute with World Liberty?
The Tron founder said he had asked a federal court to sanction World Liberty in his lawsuit over roughly 4 billion frozen WLFI tokens.
Whale Alert
CoinTelegraph
WuBlockchain
Benjamin Cowen
TheBlock