World Liberty Financial, the decentralized finance project linked to the Trump family, has launched a buyback program for its $WLFI governance token. The announcement from @worldlibertyfi said the initial allocation may include fees earned on the reserves backing its $USD1 stablecoin.
The project has not given a dollar amount or purchase schedule. It said the pace and size of buybacks will follow the growth of its ecosystem.
How the WLFI Buyback Is Funded
According to Bitcoin.com News, the firm said it plans to fund the buybacks with an initial allocation that may include fees earned from USD1 reserves and other sources. It provided no further dollar figure, schedule or burn commitment.
The distinction matters. As CoinInsider noted, the announcement refers to fees earned from reserves, not a plan to spend the reserve assets themselves. USD1 is described in a company press release as a fully redeemable, 1:1 dollar-backed stablecoin supported by U.S. Treasury bills, cash deposits and other cash equivalents.
World Liberty says the goal is to lift governance participation and concentrate voting power among long-term holders. Crypto Briefing reported that the program builds on an earlier buyback from 2025, which relied on liquidity fees, while the new version adds revenue from stablecoin reserves.
Market Context for WLFI and USD1
The launch comes after a steep decline in the token. Crypto Briefing and other outlets citing Reuters reported that WLFI is down more than 60% this year. Coinbase data showed WLFI at about $0.0469 with a market cap of roughly $1.49 billion. Only about 32 billion of the 100 billion total WLFI supply is currently in circulation.
USD1 supply has also eased from its peak. Bitcoin.com News put circulation at about $3.63 billion, down from a $5.39 billion peak in February. Other trackers show slightly different figures, and the tweet-era estimate of about 3.54 billion USD1 sits within that range.
Because reserve income scales with the size of the stablecoin, the buyback budget is tied to USD1 adoption. Crypto Briefing noted that if the stablecoin grows, the budget would likely grow with it, and if it stalls, the pace would probably slow. Analysts have also pointed out that a buyback funded by the issuer's own income does not by itself show independent demand for the token.
The effect on the WLFI price will depend on how much is actually spent and when, details the project has yet to disclose.
Sources
Bitcoin.com News: Trump-Backed World Liberty Launches a WLFI Buyback
CoinInsider: WLFI Buybacks May Use Fees From USD1 Reserves
Coinbase: World Liberty Financial (WLFI) Price and Market Cap