Nov 5 (Reuters) - Trump-backed cryptocurrency venture World Liberty Financial said on Thursday it was launching a buyback programme for its WLFI governance token, funded by an initial allocation that could include revenue generated from reserves backing its USD1 stablecoin and other sources.
The announcement comes after the WLFI token came under pressure following the Republican Party's weaker-than-expected performance in this week's US midterm elections.
The token has fallen about 10% since the vote and is down more than 60% so far this year, according to CoinMarketCap.com.
The company said the program is intended to encourage participation in WLFI governance and increase voting power among long-term token holders. It added that token buybacks are intended to become an ongoing part of its strategy.
World Liberty was co-founded in 2024 by President Donald Trump, his three sons and a group of partners. The Trump family owns 38% of World Liberty and makes money through the sale or use of its crypto tokens, the $WLFI governance token and USD1 stablecoin.
(Reporting by Disha Mishra in Bengaluru; Editing by Ronojoy Mazumdar)