Orca DAO proposes Solana staking and ORCA buybacks

Orca DAO has introduced a new treasury proposal designed to strengthen the Orca protocol through Solana staking and long-term token buybacks. 

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.

The change is expected to enhance Orca protocol’s transaction propagation while earning staking rewards that can be used for grants, token incentives, or additional development.

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.