World Liberty Financial announced on Nov. 6 that it will buy back its own WLFI token using fees earned from its USD1 stablecoin, according to a post by the Trump-backed decentralized finance project. The move comes three days after House Democrats named the Trump family firm a likely first target of their investigations.
Buyback Details
The firm said the buyback program aims to "strengthen the WLFI ecosystem and governance" and will be funded "with an initial allocation that may include fees earned from USD1 reserves and other sources." No dollar figure, schedule, or burn commitment was provided.
While projects such as Hyperliquid and Pump.fun already use platform fees to buy back their own tokens, WLFI's version is distinct because the source is interest earned on the Treasury bills and cash backing a dollar stablecoin—funds that would normally go to the issuer's shareholders but are now being recycled into the governance token.
Stablecoin Supply Declines
According to Defillama's stablecoin data, USD1's circulating supply currently stands at about $3.63 billion, down from roughly $4.43 billion in late September and well below its February peak of about $5.39 billion. A smaller float means smaller reserve income to fund buybacks.
WLFI is trading at about $0.0476, giving it a market value of roughly $1.51 billion. Trump-linked tokens were among the hardest hit after the vote, as previously reported.
World Liberty Financial is also facing a separate dispute: Tron founder Justin Sun is seeking sanctions against the project.
Political Pressure Mounts
The buyback announcement comes amid an increasingly hostile political climate. Rep. Robert Garcia, expected to chair the House Oversight Committee, sent the administration a two-word message after Democrats took the House: "Lawyer up."
Fortune reported that World Liberty Financial is likely to be among the first targets, with inquiries starting "as early as February." The same report says Trump's crypto ventures have earned him more than $1 billion and notes that an Emirati royal bought a $500 million stake in World Liberty. Trump's pardon of Binance co-founder Changpeng Zhao, who helped the family launch its stablecoin, is also expected to be reviewed.
The Senate also appears unfavorable: Sen. Elizabeth Warren, who has repeatedly gone after World Liberty this year, is expected to chair the Senate Banking Committee, according to the WSJ. Earlier in February, she wrote to the Treasury and the Fed, warning that a bailout could enrich the Trump family through the firm.
