Orca DAO has introduced a new initiative aimed at strengthening the protocol through SOL staking and long-term ORCA token buybacks. This is intended to reduce the token supply and enhance its market value.
Staking and Token Buyback Initiative
Orca DAO plans to allocate 55,000 SOL for staking and buy back ORCA tokens over a 24-month period. This initiative was posted to the DAO's governance forum on August 6. If approved, the Governance Council will have the authority to stake up to 55,000 SOL into a specific Orca validator node.
Token Buyback Program and Management
In addition to staking, the proposal adds a 24-month buyback program for ORCA tokens. The Council will be allowed to repurchase ORCA from the open market using the Treasury's SOL and USDC holdings, which currently total about 55,000 SOL and $400,000 respectively. To minimize market impact, these purchases will be carefully timed and restricted during periods of high price volatility.
Deflation and Ecosystem Growth
This proposal continues the deflationary trend established by a prior proposal that included a 25% token supply burn and $10 million in buybacks. The latest initiative enhances revenue from staking and offers a longer buyback window, aimed at fostering ecosystem growth.
The Orca DAO initiative aims to strengthen the protocol through SOL staking and ORCA token buybacks, which should reduce the supply and increase market value.
