World Liberty Financial, the Trump-backed crypto venture, launched a buyback program for its WLFI governance token on Thursday. The initial funding for the buyback could include income from reserves backing its USD1 stablecoin, according to Reuters.
The program is intended to deepen governance participation by giving long-term holders more voting weight, and the company plans to make buybacks a standing part of its strategy. Because the program targets long-term holders, it may also shift governance influence away from shorter-term traders.
Funding Sources and Stablecoin Link
The initial allocation could draw on revenue from reserves backing USD1, the company’s dollar-pegged stablecoin, plus other sources. Reuters did not specify the split among funding sources.
If reserve income carries much of the load, USD1 adoption would indirectly shape WLFI’s price support: larger reserves would produce more income, and more income would fund more buying. However, that reading weakens if other sources cover most of the allocation.
Token Performance and Political Context
WLFI has dropped about 10% since the US midterms and more than 60% this year, Reuters reported. Holders now depend on support that may come partly from stablecoin reserve income.
Donald Trump, his three sons and other partners co-founded the venture in 2024, Reuters said. The family holds 38% of World Liberty and earns revenue from selling or using WLFI and USD1.
Official Trump (TRUMP) and Melania Meme (MELANIA), two Trump meme coins, also fell to record lows after Democrats won Congress.
Self-Funded Buyback and Demand Test
A buyback funded by the issuer’s own income cannot prove independent demand. The test is how WLFI price performance holds up once the program’s buying slows.
Stablecoin issuers earn income on backing assets, so the same loop could extend to other issuers with native tokens. If reserve-funded buybacks become routine, issuer-linked token prices may track stablecoin growth as closely as market sentiment.
Legal and Regulatory Scrutiny
Justin Sun, the Tron founder, has asked a US federal court to sanction World Liberty over his frozen WLFI tokens. World Liberty has called the freeze a routine security step.
Democrats take over key oversight committees in January, and World Liberty is expected to face scrutiny first, BeInCrypto reported.
