The Trump family's cryptocurrency venture, World Liberty Financial, has announced a new WLFI token buyback program.
The token's price and Bitcoin, the world's largest cryptocurrency by market capitalization, both suffered sharp declines this week following the U.S. midterm elections.
Preliminary results from Tuesday's election indicated that Democrats will regain control of both chambers of Congress next year, triggering violent swings in cryptocurrency prices.
Tokens linked to Republican President Donald Trump experienced especially heavy selling.
According to CoinGecko data, the WLFI token has fallen about 8% since election night and is down more than 70% from its high this year.
This selloff has once again drawn attention to how the Trump family's crypto business is intertwined with the president's political fortunes.
As the token deals with the aftermath of this week's election, the buyback plan could provide support for its price.
World Liberty Financial said in a post on X Thursday: "Our goal is to encourage holders to actively participate in WLFI governance and to concentrate voting power among the most committed long-term holders."
WLFI allows holders to vote on proposals governing the protocol; within applicable limits, the more tokens held, the greater the voting power.
According to CoinGecko data, WLFI has a maximum supply of 100 billion tokens, with approximately 32% currently in circulation.
As shown in the chart above, the WLFI token declined due to the U.S. midterm election results. Source: CoinGecko
World Liberty Financial said in its post that the buyback will initially be funded by an allocation, which may come from fee revenue generated by the project's USD1 stablecoin reserves, as well as other sources.
The company did not disclose the size of the initial allocation or the purchase timeline, but said the buyback will become "an ongoing component of our long-term strategy, with its pace and scale" determined by ecosystem growth and participation.
World Liberty Financial did not immediately respond to a request for comment sent outside U.S. business hours.
The company has previously repurchased WLFI, including implementing a buyback and burn program after the token began public trading in September 2025.
World Liberty Financial was co-founded by Donald Trump, his sons, and other business partners just weeks before the 2024 election.
According to website disclosures, DT Marks DEFI LLC, an entity associated with the president and his family members, holds approximately 38% equity in World Liberty Financial Holdings.
Company disclosures also show that the Trump family holds WLFI tokens, with their economic interests tied to token sales and the reserves backing the USD1 stablecoin.
The latest buyback plan comes at a sensitive time for the project, as it faces both a tougher political environment and a prolonged decline in its governance token.
Trump's financial interests in the cryptocurrency space have drawn scrutiny from Democratic lawmakers.
These interests have raised conflict-of-interest questions as his administration pushes a policy agenda favorable to the industry.
Disclosures in June this year showed that the president earned $1.4 billion in revenue from crypto-related businesses last year, with approximately $594 million coming from World Liberty Financial sales, further intensifying concerns.
Blue Wave Divides Risk Appetite: Tech Giants Repair Cash Flow Expectations, Crypto Assets Reprice Policy Benefits
The Trump family's crypto venture World Liberty Financial has announced a new WLFI token buyback plan, with initial funding potentially including fee revenue related to USD1 stablecoin reserves and other sources.
Based on CoinGecko data cited in reports, WLFI has fallen about 8% since election night and is down more than 70% from its yearly high.
Democrats retaking both chambers of Congress puts Trump-linked assets under stronger supervisory expectations, while the buyback attempts to provide support for the token through new buying and long-term holder participation.
The key question is whether buyback funding can be sustained. The company has not disclosed the initial size or purchase timeline, nor has it clarified whether the new plan includes token burning, so it cannot currently be viewed as a certain supply contraction.
On Wednesday, Microsoft, Amazon, Alphabet, and Meta rose 6.7%, 6.1%, 3.2%, and 1.4% respectively.
Clearer election results and declining oil prices and U.S. Treasury yields improved market sentiment; the potential slowdown in data center expansion also prompted investors to reassess tech giants' capital expenditure pressure and the value of existing computing power.
B. Riley Wealth chief market strategist Art Hogan noted that a slower construction pace could reduce overexpansion and increase the value of existing data centers.
Tech giants gained from a repricing of cash flow and asset scarcity, while the semiconductor sector closely tied to AI computing power and Trump-linked tokens absorbed a pullback in political association premiums.
The crypto market also faces uncertainty over legislative progress and conflict-of-interest investigations.
Wincent senior director Paul Howard believes that with Democrats strengthening their influence in Congress, substantive progress on crypto legislation will depend more on bipartisan cooperation.
However, Bitcoin's actual path was: decline, rebound, then sharp plunge. It reclaimed $80,000 on Wednesday, then fell about 6% to $75,700 on Thursday amid the tech stock selloff, with reports citing approximately $1.09 billion in crypto leverage positions liquidated over 24 hours; as of around 4 p.m. Beijing time on November 6, it was quoted at approximately $75,566, down about 6.3% over 24 hours.
This round of pressure stems from both shifting policy expectations and broad deleveraging, and not all of the logic can be attributed to the midterm elections.
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