Financial entity, World Liberty, proposes employing all protocol fees for buying back and permanently destroying WLFI tokens.

World Liberty Financial (WLFI) has proposed an ambitious plan to stabilise the value of its token and reward long-term holders. The plan involves allocating 100% of the protocol's liquidity fees towards buying back and burning WLFI tokens.

The proposal comes after a volatile market period, during which WLFI prices dropped almost 30% after its launch, and further declined by nearly 36% from its peak price. Despite a governance action taken to address the price drop, the proposal does not include a contingency plan for treasury emergencies.

The burn proposal aims to reduce the token's supply on Ethereum, BNB Chain, and Solana. Repurchased tokens will be sent to a burn address, removing them from circulation. However, the exact fee amounts for the burn program are not clearly defined, making it difficult to predict the impact of the burns.

The WLFI token, officially launched in August on Binance and other major exchanges such as Bybit, recently unlocked 24.6 billion tokens, increasing its circulating supply. Despite this, open interest for WLFI remains high at $920 million, according to Coinglass. The token currently trades near $0.235.

The Trump family is among the project's notable holders, with an estimated holding of WLFI tokens worth $5 billion. In February, WLFI increased its crypto holdings despite a market decline. Trump also announced a plan to establish a cryptocurrency reserve for future financial goals.

The project believes that reducing the token supply could help stabilise market value and reward long-term holders. The proposal suggests a potential long-term program for token management. The project may expand the strategy to cover other sources of revenue in the future, excluding fees from third-party or community-contributed liquidity.

It's worth noting that no available search results indicate which person or organisation proposed the reduction of the WLFI token supply through the use of protocol liquidity funds. The project's strategy is a significant move in the cryptocurrency landscape and could set a precedent for other projects seeking to manage their token supply.