TLDRWorld Liberty Financial has approved a governance proposal to reduce the supply of its WLFI token.The proposal passed with overwhelming support, receiving 99.8% approval from the community.WLFI will use treasury liquidity fees for buybacks and burns to permanently remove tokens from circulation.The token buybacks will occur across Ethereum, BNB Chain, and Solana.WLFI’s price dropped by 40% after its September launch despite burning 47 million tokens.World Liberty Financial (WLFI) has approved a governance proposal to reduce its native token’s supply. The proposal aims to boost WLFI’s value following its disappointing price performance since launch. The vote passed with overwhelming support, marking a key strategy shift for the platform.Governance Proposal Passed with Overwhelming SupportOn Thursday, World Liberty Financial passed a governance vote that will use the project’s treasury fees. The decision is to fund buybacks and burns of the WLFI token. The proposal received 99.8% approval, with only 0.06% opposing the motion.The buybacks will take place across multiple blockchain platforms, including Ethereum, BNB Chain, and Solana. These purchases will reduce the circulating supply of WLFI tokens. According to the proposal, this approach will “increase relative weight for committed long-term holders.”WLFI will send the purchased tokens to a burn address for permanent removal. This process aims to create more scarcity and demand for the token. However, the proposal did not provide an estimate on the fees generated by the platform.WLFI Faces Early Price Struggles Post-LaunchThe governance proposal follows a rough start for WLFI, which launched on September 1. Despite burning 47 million tokens on September 3, the token’s price fell 40% in the first three days. This significant drop led to losses for large investors, including former kickboxing champion Andrew Tate.Tate realized a $67,000 loss on his WLFI holdings on the decentralized exchange Hyperliquid. His cumulative losses on his account nearly reached $700,000. This price drop underscores the challenges the project faces despite token burns and governance efforts.Buybacks and Burns as Core Strategy for WLFIThe new proposal is seen as the foundation for WLFI’s token buyback strategy. As the platform collects liquidity fees from various chains, these funds will be used to repurchase WLFI tokens. World Liberty Financial also plans to explore other revenue streams to increase the scale of these buybacks and burns.The platform’s long-term goal is to support WLFI token value by reducing its circulating supply. The team remains focused on creating more demand through these strategic efforts. Investors will be closely watching the impact of these measures on WLFI’s market performance.The post WLFI Token Buyback Plan Gains 99.8% Approval from World Liberty appeared first on Blockonomi.