World Liberty whales return as WLFI burn proposal wins majority approval

Source Cryptopolitan

World Liberty Fi will take the deflationary path to WLFI, after the burn proposal is set to be accepted with a majority vote in favor. WLFI still traded flat, as the token aims to encourage holding. 

World Liberty Fi aims to make WLFI a deflationary token with regular buybacks and burns. The proposal will completely change the tokenomics of WLFI and the goals of World Liberty Financial. 

When the proposal passes, World Liberty Fi will allocate all fees from providing liquidity to buybacks and burns. Ahead of the proposal, WLFI traded flat at around $0.19, as some whale selling and low demand pressured the price. 

WLFI burn proposal accepted, whales return to accumulation
WLFI traded sideways, still not reacting to the eventual burns starting in a week. | Source: Coingecko

Based on the proposal, the fees will be swapped for WLFI on the open market, creating liquidity and demand. The burn will not happen from reserves or other inactive wallets. 

WLFI burn proposal shows overwhelming support

With six days left for voting, the proposal has already counted 99% of early votes in favor of the proposal. WLFI tokens will produce fees from their own liquidity pools on Ethereum, BSC, and Solana. Those fees will be sent back to the market, boosting the token’s valuation. 

The platform aims to protect WLFI with other tools, after receiving criticism for freezing whale wallets to prevent selling, as covered earlier by Cryptopolitan. 

WLFI expects the burns to start from next week, starting another stage of the project. Previous rumors have suggested a rather high burn rate of up to 1M tokens per day, but this will depend on DeFi activity. 

The WLFI token is now the main focus of the project, as it makes up the bulk of the platform’s holdings. World Liberty Fi now holds $9.8B in assets, of which WLFI makes up around $9.2B. While the token is tradable and listed on multiple chains and exchanges, the end goal is still to encourage holding, voting, and using WLFI for DeFi. 

Whale starts building WLFI stash

New demand for WLFI is growing slowly, as whales accumulate in the post-ICO market. One buyer withdrew WLFI from BitGet, storing $35.71M tokens valued at $7.15M. 

Another prominent trader, the White Whale, showed that the WLFI withdrawal process was generally hampered for general investors. Some buyers had privileged access and could cash out more readily. 

In general, whale traders are somewhat bearish on WLFI. Currently, Hyperliquid carries 12 positions on the token, of which seven whales are shorting WLFI. The biggest position is a short sale with a notional value of $3M.

So far, WLFI has not seen any dramatic pumps and has traded sideways for a relatively long period. Despite launching at the start of an altcoin season, WLFI is still in early price discovery. The Justin Sun wallet freeze also affected the project, sparking fears of not being able to cash out of WLFI. 

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