Solana News Today: Orca DAO Launches Solana Staking and 24-Month ORCA Buyback Program

Orca DAO has proposed a governance initiative aimed at stabilizing and enhancing the value of its native token, ORCA, by leveraging Solana (SOL) staking and launching a 24-month token buyback program. The proposal, posted on the Orca governance forum on August 6, 2025, would allow the DAO to stake up to 55,000 SOL from its treasury into a dedicated Orca validator node. This move is expected to contribute to the decentralization and security of the Solana network while generating staking rewards for the DAO treasury [1][2].

In parallel, the Council would be authorized to repurchase ORCA tokens from the open market using the protocol’s holdings of approximately 55,000 SOL and $400,000 in USD Coin (USDC). These repurchases could be used for various purposes, including burning tokens to reduce supply, granting them to ecosystem projects, or allocating them as staking rewards. The buyback process will be managed with caution, limited to 2% of ORCA’s daily trading volume and suspended during periods of high volatility to minimize market impact [1].

To ensure accountability and transparency, the Council has pledged to publish quarterly reports detailing token repurchase activities, including average prices and treasury balances. All relevant wallets will also be made publicly accessible on-chain, enabling real-time verification by the community [1].

The initiative aligns with a previous proposal in April 2025 that included a 25% supply burn and $10 million in buybacks, which contributed to a 76.8% increase in ORCA’s price. This new proposal extends the deflationary strategy by incorporating staking-derived income and a longer buyback window, signaling a sustained commitment to supply management [1].

The governance process includes a four-day discussion period, followed by a five-day on-chain vote and a two-day cooldown phase. During this time, ORCA tokenholders can submit veto votes. If no veto is cast, the Council will proceed with the implementation [2].

While ORCA has shown a 3.14% gain in a single day, it has also seen a 20.99% drop over the past 90 days, highlighting concerns about token value erosion. Analysts note that the success of the buyback program will depend on the speed of execution and the efficient allocation of treasury assets. The structured approach taken by Orca DAO may serve as a governance-driven model for other DeFi protocols, particularly in liquidity and supply management [1].

Source:

[1] Orca Council Issues Governance Proposal to Repurchase up... (https://www.bitget.com/news/detail/12560604899245)

[2] Orca DAO proposes Solana staking and ORCA buybacks (https://crypto.news/orca-dao-proposes-solana-staking-orca-buybacks-2025/)