Orca DAO Proposes Treasury Strategy for Solana Staking and ORCA Buybacks to Enhance Protocol Value

• Orca DAO plans to stake 55K SOL and repurchase ORCA over a 24-month period.

• Repurchased tokens may be burned, used for staking rewards, or granted to ecosystem projects.

• The initiative seeks to reduce supply, strengthen Solana alignment, and boost long-term protocol value.

Orca DAO’s new treasury strategy aims to enhance protocol value through Solana staking and a buyback program, ensuring long-term growth.

What is the Orca DAO Treasury Proposal?

The Orca DAO has proposed a treasury strategy to stake 55,000 SOL and initiate a buyback program for ORCA tokens. This initiative is designed to enhance the Orca protocol’s value and reduce the circulating supply of ORCA tokens.

How Will the Buyback Program Work?

The buyback program will allow the Council to repurchase ORCA tokens using the Treasury’s SOL and USD Coin (USDC) holdings, totaling approximately 55,000 SOL and $400,000. These purchases will be carefully timed to minimize market impact.

Frequently Asked Questions

What are the benefits of the Orca DAO’s buyback program?

The buyback program aims to reduce the circulating supply of ORCA tokens, potentially increasing their value while providing rewards to token holders.

How will the treasury funds be managed?

The treasury funds will be managed transparently, with quarterly reports detailing token purchases and treasury balances published by the Council.

Key Takeaways

• Orca DAO’s proposal includes staking 55K SOL and a buyback program for ORCA tokens.: This aims to enhance protocol value.
• Token repurchases will be carefully timed: To minimize market impact and ensure stability.
• Transparency is a priority: The Council will publish detailed reports on treasury management.

Conclusion

The Orca DAO’s treasury proposal represents a strategic move to enhance the Orca protocol’s value through staking and a structured buyback program. This initiative not only aims to stabilize the token’s market but also fosters long-term growth and community engagement.

The proposal was posted to the Orca (ORCA) governance forum on Aug 6. The DAO’s Governance Council would have the power to stake up to 55,000 SOL from the Treasury wallet into a specific Orca validator node if it were approved. This validator would give Orca a means to make good use of unused treasury assets in addition to promoting the stability and decentralization of the Solana (SOL) network.

Buyback Program to Reduce Supply and Reward Holders

The proposal adds a 24-month buyback program for the ORCA token in addition to staking. The Council would be allowed to repurchase ORCA from the open market using the Treasury’s SOL and USD Coin (USDC) holdings, which currently total about 55,000 SOL and $400,000, respectively.

To minimize the impact on the market, these purchases would be timed carefully. Buybacks would be restricted according to trading volume and halted during times of high price volatility.

Purchased tokens would be kept in a multi-signature wallet under DAO control. Depending on the requirements of the protocol, they could be distributed as grants to support ecosystem expansion, permanently burned to lower the amount in circulation, or given to xORCA staking participants as extra rewards.

To ensure transparency, the Council has committed to publishing detailed quarterly reports that include information on token purchases, average prices, and treasury balances. Additionally, all relevant wallets will be made publicly available on-chain.

Deflation, Staking Incentives, and Ecosystem Growth

This proposal comes after an earlier proposal from April 2025 that included a 25% supply burn and $10 million in buybacks, which caused ORCA’s price to rise by 76.8%. The latest proposal continues that deflationary trend by introducing staking-based revenue and a longer buyback window.

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 Council will move forward with execution.