Orca DAO has unveiled a new treasury proposal aimed at bolstering the Orca protocol through Solana staking and long-term token buybacks.
Posted on the Orca governance forum on August 6, the proposal seeks to grant the DAO’s Governance Council the authority to stake up to 55,000 SOL from the Treasury wallet into a designated Orca validator node.
If approved, this move is expected to improve transaction propagation across the Orca protocol while generating staking rewards. These rewards could then be allocated toward grants, token incentives, or future development initiatives.
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 network.
Buyback program aimed at reducing token supply and rewarding holders
The proposal introduces a 24-month buyback program for the ORCA token alongside the staking initiative. Under this plan, the Governance Council would be authorized to repurchase ORCA tokens from the open market using the Treasury’s current holdings of approximately 55,000 SOL and $400,000 in USD Coin.
To reduce market disruption, buybacks would be strategically timed and limited based on trading volume. They would also be paused during periods of significant price volatility.
All repurchased tokens would be stored in a DAO-controlled multi-signature wallet. Depending on the protocol’s evolving needs, these tokens could be used for ecosystem grants, permanently burned to reduce circulating supply, or distributed as additional rewards to xORCA staking participants.
To maintain transparency, the Council has pledged to release comprehensive quarterly reports detailing token purchases, average buyback prices, and treasury balances. Furthermore, all associated wallets will be made publicly accessible on-chain.
Token deflation, enhanced staking rewards, and ecosystem expansion
This proposal follows an earlier initiative from April 2025 that featured a 25% token burn and $10 million in buybacks, leading to a 76.8% surge in ORCA’s price. Building on that deflationary momentum, the new proposal introduces staking-based revenue and extends the buyback timeline.
After a four-day discussion period, the proposal will proceed to a five-day on-chain vote. This will be followed by a two-day cooldown phase, during which tokenholders may submit a veto. If no veto is issued, the Council will proceed with implementation.
