TL;DR
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Redirect WLFI’s protocol-owned liquidity (POL) fees to buy BTC and ETH for the Treasury instead of WLFI buybacks. Community LP fees are unaffected.
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Now is a rare opportunity to accumulate these blue-chip assets at relatively low valuations, with strong historical trends pointing toward long-term appreciation. Buybacks can happen later, but this window to build long-term value and strengthen WLFI’s future position won’t last.
Overview
This proposal recommends redirecting all fees earned from WLFI’s protocol-owned liquidity (POL) toward the purchase of BTC and ETH for the WLFI Treasury, rather than continuing the current strategy of using those fees for WLFI token buybacks and burns.
The goal is to enhance the long-term financial strength, resilience, and visibility of the WLFI ecosystem by acquiring blue-chip crypto assets.
Only fees generated by WLFI-owned liquidity positions are affected. Fees from community or third-party LPs remain unaffected.
Rationale
1. Accumulating Strategic Reserve Assets
BTC and ETH are the most secure, liquid, and widely held assets in the crypto ecosystem. By using POL fees to accumulate these assets while prices remain historically low, WLFI can benefit from long-term capital appreciation that far exceeds the short-term impact of token buybacks.
2. Opportunity Cost of Buybacks
Buybacks offer short-term optics by reducing token supply, but they consume capital that could otherwise be used to build a compounding, appreciating treasury. Allocating fees toward BTC and ETH is a high-conviction, long-horizon play that maximizes protocol value and resilience.
3. Treasury Strength = Ecosystem Resilience
A BTC- and ETH-backed treasury provides strategic flexibility during market volatility, unlocks future integrations with DeFi protocols, and strengthens WLFI’s position in DAO-to-DAO collaborations or liquidity bootstrapping events.
4. Brand Visibility and Market Positioning
Holding BTC and ETH opens up significant marketing and community engagement opportunities. Publicly showcasing growing BTC and ETH reserves enables WLFI to:
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Tap into the broader BTC and ETH communities, aligning with the values of decentralization, sound money, and long-term thinking.
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Gain visibility among Bitcoin and Ethereum supporters who are more likely to engage with projects that hold and promote these assets.
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Tell a growth narrative similar to what Strategy (formerly MicroStrategy) has done for Bitcoin and BitMine is doing for Ethereum: leveraging treasury strategy as a tool for media attention and ecosystem alignment.
This strategy is not just financial, it is narrative-driven, helping WLFI continue to position itself as a serious, strategic player in the broader Web3 space.
5. Signaling Long-Term Vision
Shifting from a short-term price mechanism to long-term asset growth sends a clear signal: WLFI is focused on building enduring value for the protocol and its community. It aligns the treasury’s growth with that of the broader crypto ecosystem.
Implementation Plan
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Fees generated from WLFI-owned liquidity positions (on Ethereum, BSC, Solana, etc.) will be collected as usual.
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These fees will be converted to BTC and ETH (proposed 50/50 split, adjustable via DAO vote or Treasury team discretion).
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The acquired assets will be held in the WLFI Treasury, tracked on-chain for full transparency.
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No action will be taken on community or third-party LP fees.
Alternatives Considered
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Continuing with the current buyback and burn model.
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Splitting POL fees between WLFI buybacks and BTC/ETH purchases.
While each option has merit, accumulating BTC and ETH represents the most forward-looking and strategically beneficial use of fees at this stage. It enables treasury growth while maintaining optionality for future protocol initiatives.
Request for Action
I request the WLFI team consider this proposal for community discussion and, if aligned, move it forward for an official vote.
Proposed Voting Options
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FOR: Redirect 100% of WLFI-controlled POL fees to purchase BTC and ETH for the Treasury.
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AGAINST: Continue allocating POL fees for WLFI token buybacks and burns.
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ABSTAIN: No opinion.
Closing Thoughts
This proposal is not just a tactical change, it’s a shift in how WLFI approaches long-term value creation. By accumulating BTC and ETH now, while prices remain comparatively low, WLFI can position itself as a protocol with a resilient, appreciating treasury and a future-oriented growth strategy.
I look forward to the team’s feedback and the community’s input.
Respectfully submitted,
WLFI HODLer