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World Liberty Financial has begun a buyback program for its own WLFI governance and utility token, a move AMBCrypto reported came after the token lost 16.67% in two days, sliding from $0.0522 on November 3 to an all-time low of $0.0435 on November 5. The token had recovered 5.52% to $0.046 at the time of that report, though the trend remained negative.
Key facts
- World Liberty Financial said the buyback draws on an initial pool that may include fees earned from USD1 reserves; no dollar figure, schedule or burn commitment was disclosed (Bitcoin.com News).
- The Democratic sweep of the Senate and House in the midterms drove the selloff, with concerns over legislative oversight of Trump-linked crypto ventures cited as the trigger (AMBCrypto).
- Sen. Richard Blumenthal (D-CT), the incoming chair of the Senate Permanent Subcommittee on Investigations, sent letters to Binance, Tether, World Liberty Financial and Fight Fight Fight LLC seeking records by January 4, 2027 (AMBCrypto).
- USD1’s circulating supply stood at about $3.63 billion, down from roughly $4.43 billion in late September and below a February peak of about $5.39 billion, per Defillama data cited by Bitcoin.com News.
- Coinpedia reported that WLFI had already fallen more than 60% year to date before the buyback announcement, which it dated to November 5.
The stablecoin’s reserves as a funding source
The mechanism stands apart from buybacks already run by projects such as Hyperliquid and Pump.fun, Bitcoin.com News noted: WLFI would recycle interest earned on the Treasury bills and cash backing a dollar stablecoin, income that would normally accrue to an issuer’s shareholders. The company framed the program as a way to encourage governance participation and concentrate voting power among committed long-term holders.
Also read: SkyAI Exits Solana Treasury and Offers $201.3M Buyback
Bitcoin.com News put WLFI at about $0.0476, a market value of roughly $1.51 billion, and placed the announcement on November 6, three days after House Democrats named the Trump family firm a likely first investigative target. Coinpedia dated the announcement to November 5. Tron founder Justin Sun is also seeking sanctions against the project in an ongoing dispute, according to Bitcoin.com News.
Political pressure on two fronts
Rep. Robert Garcia, expected to chair the House Oversight Committee, told the administration to “Lawyer up” after Democrats took the House, and Fortune reported that inquiries into World Liberty Financial could begin as early as February, Bitcoin.com News reported. Sen. Elizabeth Warren is expected to chair the Senate Banking Committee, according to the WSJ, as cited by Bitcoin.com News.
Coinpedia’s technical read is cautious. It said WLFI broke below a consolidation range near $0.052, called $0.040–$0.042 the immediate support zone, and flagged that a break there could open the way toward $0.035, while a recovery above $0.052 could point to $0.060–$0.065. It also noted a decline of around 7% over the prior seven days.
Why it matters
A token already under election-driven selling pressure now has a demand-side catalyst, but a smaller USD1 float means less reserve income to spend on it. The buyback therefore depends on scale that has not been disclosed. For holders, the political calendar matters as much as the program itself: Democrats hold both chambers and can issue subpoenas, which the Financial Times, as cited by AMBCrypto, said could carry civil or criminal penalties if ignored.
What to watch
The January 4, 2027 deadline for records requested by the PSI panel, the start of House Oversight inquiries expected as early as February 2027, and any disclosure of the buyback’s size or execution pace.
Coinpedia’s long-range projections (a $0.30–$0.80 range for 2026, and up to $5.00 by 2030) are the author’s opinion and not financial advice; crypto markets are volatile and uncertain.
Reported by AMBCrypto.
Sources: AMBCrypto, Coinpedia, Bitcoin.com News