Orca DAO Proposes Treasury Overhaul with Solana Staking and Token Buybacks
In a move to bolster the Orca protocol, the Orca DAO has introduced a new treasury proposal that combines Solana staking with long-term token buybacks. The proposal, posted to the Orca governance forum on August 6, aims to enhance the protocol’s transaction propagation, earn staking rewards, and reduce the ORCA token supply.
Solana Staking for Enhanced Transaction Propagation
If approved, the Orca DAO’s Governance Council would be empowered to stake up to 55,000 SOL from the Treasury wallet into a specific Orca validator node. This change is expected to improve the Orca protocol’s transaction propagation, enabling faster and more efficient transactions. The staking rewards earned would be used to fund grants, token incentives, or additional development, further solidifying the protocol’s foundations.
Promoting Solana Network Stability and Decentralization
By staking Treasury assets, Orca would contribute to the stability and decentralization of the Solana network. This move would also make good use of unused treasury assets, reducing idle resources and promoting a more efficient use of funds.
24-Month Token Buyback Program
In addition to staking, the proposal introduces a 24-month token buyback program for the ORCA token. The Governance Council would be authorized to repurchase ORCA from the open market using the Treasury’s SOL and USD Coin holdings, totaling approximately 55,000 SOL and $400,000, respectively.
Careful Timing to Minimize Market Impact
To avoid disrupting the market, buybacks would be carefully timed, restricted according to trading volume, and halted during periods of high price volatility. Purchased tokens would be stored in a multi-signature wallet under DAO control, awaiting distribution as grants, permanent burning to reduce supply, or as extra rewards for xORCA staking participants.
Transparency and Accountability
To ensure transparency, the Governance Council has committed to publishing detailed quarterly reports, including information on token purchases, average prices, and treasury balances. All relevant wallets will be made publicly available on-chain, providing an additional layer of accountability.
Deflationary Trend Continues
This proposal builds upon an earlier proposal from April 2025, which included a 25% supply burn and $10 million in buybacks, resulting in a 76.8% price increase for ORCA. The latest proposal continues this deflationary trend by introducing staking-based revenue and a longer buyback window, further reducing the ORCA token supply and rewarding holders.
Voting and Execution
Following a four-day discussion period, the proposal will be subject to a five-day on-chain vote, followed by a two-day cooldown phase during which tokenholders may submit a veto. If no veto is submitted, the Governance Council will move forward with execution, marking a significant milestone in Orca’s journey towards a more robust and sustainable protocol.
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