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World Liberty Financial says it will buy back WLFI using USD1 reserve fees
The Trump-backed DeFi project says fees earned on its USD1 stablecoin reserves will help fund WLFI buybacks, three days after House Democrats named the firm a likely early target of investigations.
Why it matters: The buyback ties a Trump family token's support to income from its stablecoin reserves, at a moment when Democrats are preparing oversight of the firm.
Key points
- World Liberty Financial announced the WLFI buyback programme on 6 Nov, with no dollar figure, schedule or burn commitment given.
- USD1 supply has fallen to about $3.63bn from $4.43bn in late September and a $5.39bn peak in February.
World Liberty Financial says it will buy back its WLFI token partly with fees earned on USD1 reserves, announcing the programme on 6 Nov. The Trump-backed DeFi project said the buyback would strengthen the WLFI ecosystem and its governance, according to Bitcoin.com News. It gave no dollar figure, timetable or commitment to burn the tokens repurchased.
The buyback programme stands out for where the money comes from.
The timing points to pressure rather than momentum. DefiLlama data cited by the outlet puts USD1's circulating supply at about $3.63bn, down from roughly $4.43bn in late September and well below the $5.39bn peak in February. A smaller float means less reserve income to fund buybacks.
Tron founder Justin Sun is separately seeking sanctions against the project.
What to watch: House Oversight Committee inquiries into World Liberty Financial could begin as early as February, according to Fortune.
Live updates on NewsFeeds:StablecoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.