- WLFI to use all protocol-owned liquidity fees for token buyback.
- Burn mechanism will reduce total supply over time.
- Holders benefit as WLFI scarcity increases.
In a move designed to benefit its community and strengthen tokenomics, WLFI has announced it will use 100% of its protocol-owned liquidity fees to buy back and burn $WLFI tokens. This deflationary mechanism aims to reduce the circulating supply of WLFI while simultaneously rewarding long-term holders through increased scarcity.
By committing all liquidity fees to buybacks, WLFI aligns its protocol growth with tokenholder value, providing a clear incentive for holding the token over time.
How the Burn Mechanism Works
Each time the WLFI protocol earns liquidity fees, those fees will now be used to purchase WLFI tokens from the market . These purchased tokens will then be permanently removed from circulation through a burn process. This not only decreases the available supply but can also positively influence the token’s price if demand remains constant or increases.
Burning tokens reduces inflationary pressure, meaning that over time, WLFI becomes a rarer asset. This scarcity model mirrors strategies used by major crypto projects to boost long-term value and create stronger market dynamics.
What This Means for WLFI Holders
For current and future WLFI holders, this mechanism presents a unique value proposition. As supply decreases and if demand continues to grow, the value of each WLFI token could potentially rise. It’s a classic economic principle — less supply, steady or growing demand, higher value.
This initiative also shows WLFI’s commitment to sustainable tokenomics and community-focused development. By reinvesting protocol profits into its ecosystem, WLFI is setting a precedent for how decentralized finance ( DeFi ) projects can build long-term value.
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