Orca Council Proposes 24-Month Buyback to Boost Token Scarcity

On August 7, 2025, the Orca Council announced a proposed buyback plan to repurchase ORCA tokens using 55,000 SOL and 400,000 USDC from the protocol’s treasury. The initiative, which spans 24 months, aims to increase token scarcity and stabilize the market value of ORCA by reducing its circulating supply. The daily buyback is capped at 2% of ORCA’s average trading volume, with a pause mechanism during high market volatility to minimize exposure to price swings [1].

The proposal includes staking strategies and careful asset management to ensure the funds are used efficiently. The Orca Council’s governance framework will facilitate a formal vote, allowing token holders to influence the plan’s approval. This move reflects the council’s responsiveness to community concerns regarding price volatility and demand, reinforcing its commitment to long-term sustainability and investor confidence [1].

ORCA’s current market price stands at $2.17, with a market capitalization of $129.81 million and a 24-hour trading volume of $10.68 million. Despite recent gains of 3.14% in a day, the token has experienced a 9.17% decline over seven days and a 20.99% drop over 90 days. The buyback initiative could influence broader DeFi operations, particularly in liquidity and supply management, if implemented successfully [1].

Analysts have noted that the effectiveness of the buyback will depend on the rate of execution and the treasury’s management of allocated funds. While traditional markets often use buybacks to enhance shareholder value, the impact in DeFi is more nuanced due to the dynamic nature of token economics. The Orca Council’s proposal represents a structured and transparent approach to addressing these complexities [1].

The Orca buyback plan aligns with historical strategies such as those used by MakerDAO, where token value was reinforced through burning and scarcity creation. If the plan is approved, it could set a precedent for other DeFi protocols seeking governance-driven solutions to stabilize token economies [1].

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