Core Viewpoint - The recent unlocking of 20% of WLFI tokens by a major investor has led to significant price volatility, raising concerns about potential selling pressure in the market [1][3][6] Token Unlocking and Market Reaction - The investor unlocked 200 million WLFI tokens, valued at approximately $59.45 million, which were initially purchased at $0.015 each, resulting in a paper profit exceeding 38 times the initial investment [1] - Following the unlocking, WLFI's price fluctuated from $0.33 to $0.21, ultimately stabilizing at $0.245, reflecting a 14% increase from the initial offering price of $0.28 [3][6] Governance Proposal for Token Buyback - The WLFI community proposed a governance plan to redirect all fees generated from liquidity pools on Ethereum, BSC, and Solana to buy back and permanently destroy WLFI tokens, aiming to reduce circulating supply and enhance token scarcity [3][4] - The proposal includes a mechanism where increased usage leads to higher fees and more tokens being destroyed, similar to stock buyback programs in traditional companies [4][10] Concerns Regarding Buyback Effectiveness - Analysts express skepticism about the proposal's effectiveness due to potential supply pressure from future unlocks, which may exceed the buyback capacity [6] - The current low operational demand for WLFI could limit the generation of fees necessary for a sustainable buyback program [6][10] Strategic Implications and Market Positioning - The buyback strategy may limit WLFI's flexibility in funding product development and ecosystem incentives, despite the initial positive cash reserves from previous fundraising [7] - WLFI's association with high-profile figures, including Donald Trump, raises questions about its long-term value growth, necessitating a shift from a narrative-driven approach to a technology-driven ecosystem [7][8] Future Outlook and Challenges - The introduction of a stablecoin linked to the US dollar aims to enhance WLFI's core lending functionality, which is not yet fully operational [8] - The balance between fair distribution and long-term incentives in token economics remains a challenge, with the need for actual product deployment and user growth to support price stability [10]