junebug@junebug77
Wait, WLFI might use stablecoin revenue to buy back its own token?
saw the news about World Liberty Financial's new buyback plan.
apparently they may use revenue earned from the reserves backing USD1, plus other funding sources, to buy more WLFI.
i get why token holders would like that. buybacks can support the token, and the team says it wants more governance power in the hands of long-term holders.
but now i'm wondering how the two tokens fit together.
USD1 is supposed to be a stablecoin. WLFI is a governance token.
not exactly the same group of holders with the same interests.
also there's a difference between using earnings from the reserves and using the actual assets backing the stablecoin. the announcement doesn't mean they're spending the reserves themselves.
i'd really like to see how much revenue is involved, who decides how it's allocated, and where the repurchased tokens go afterward.
haven't seen a clear breakdown yet.
does anyone know if there's a more detailed proposal somewhere? the actual mechanics are a lot
more interesting to me than just hearing "token buyback".
How Will WLFI's Token Buyback Actually Work?
World Liberty Financial has announced a WLFI token buyback program that may be funded partly by revenue associated with its USD1 stablecoin reserves.
I'm looking for primary-source documentation that answers three questions:
- What proportion of the buyback funding will come from USD1-related revenue versus other sources?
- Who has authority to approve or change the allocation, and what role do token holders have?
- What happens to the repurchased WLFI tokens, and how could that affect the distribution of governance voting power?
Official announcements, governance proposals, tokenomics documents and verifiable onchain records would be especially useful.
Please distinguish confirmed details from assumptions or estimates.