The Trump family’s World Liberty project is once again touting a WLFI buyback.
The official line: use fees and other funds generated by USD1 reserves to buy back its own governance token, supposedly to “strengthen the voting power of long-term holders.” The amount? The timeline? Will the tokens be burned or put in the treasury? Not a word.
Reuters puts it plainly: the Trump family owns about 38% of the company and makes money by selling or using WLFI and USD1. The token price fell about 10% after the midterms and is down more than 60% so far this year. The issuer is the one earning interest on the money stablecoin users lock in reserves—and now it’s using that interest to prop up its governance token. It’s clear who benefits.
USD1’s circulating supply is about $3.63 billion, according to DefiLlama—down from roughly $4.43 billion at the end of September and a February peak of about $5.39 billion. As the pool shrinks, so does the interest margin, yet the buyback narrative still depends on a shrinking stablecoin to feed it.
Stronger governance? It looks more like using stablecoin users’ money to concentrate holdings among whales and affiliated parties. A buyback with no figures is just PR for now.
#WLFI #USD1
The official line: use fees and other funds generated by USD1 reserves to buy back its own governance token, supposedly to “strengthen the voting power of long-term holders.” The amount? The timeline? Will the tokens be burned or put in the treasury? Not a word.
Reuters puts it plainly: the Trump family owns about 38% of the company and makes money by selling or using WLFI and USD1. The token price fell about 10% after the midterms and is down more than 60% so far this year. The issuer is the one earning interest on the money stablecoin users lock in reserves—and now it’s using that interest to prop up its governance token. It’s clear who benefits.
USD1’s circulating supply is about $3.63 billion, according to DefiLlama—down from roughly $4.43 billion at the end of September and a February peak of about $5.39 billion. As the pool shrinks, so does the interest margin, yet the buyback narrative still depends on a shrinking stablecoin to feed it.
Stronger governance? It looks more like using stablecoin users’ money to concentrate holdings among whales and affiliated parties. A buyback with no figures is just PR for now.
#WLFI #USD1