Solana News Today: Orca DAO Allocates 55,000 SOL 400,000 USDC for 24-Month Buyback Program

Orca DAO has proposed a new governance initiative to deploy 55,000 dollars worth of SOL and 400,000 dollars worth of USDC from its treasury for a structured token buyback program. If approved, the Orca Governance Council will gain authority to allocate these funds toward validator operations and the strategic repurchase of $ORCA tokens over a 24-month period [1].

The initiative outlines three primary objectives: first, to utilize the SOL held in the treasury to enhance transaction propagation across the Orca protocol via the Orca Validator; second, to execute a market-neutral buyback of $ORCA tokens; and third, to repurpose the acquired tokens through burning, distribution as rewards for xORCA holders, or allocation as ecosystem grants [1].

Under the proposed plan, the DAO Treasury’s SOL holdings will initially be deposited into a dedicated validator. This validator is designed to optimize Orca’s usage patterns and improve node performance. The Council will retain flexibility to draw from these funds periodically to finance the buyback initiative [1].

The buyback process will involve purchasing $ORCA on public markets using treasury assets, with a daily cap of 2% of the 30-day average trading volume to mitigate market distortion. These purchases will be executed through decentralized exchanges or in collaboration with market makers. Acquired tokens will be stored in a multi-signature wallet and allocated according to one of three strategies: burning to reduce supply, distributing as xORCA rewards, or funding ecosystem grants [1].

To manage risk, the Council will pause buybacks during high-volatility periods—defined as 24-hour price swings exceeding 15%. Additionally, it will monitor exchange rates (SOL/USD, SOL/ORCA, ORCA/USD) to optimize capital efficiency. The Council is also required to publish quarterly reports detailing the total number of tokens purchased, average acquisition price, total cost, and remaining funds. The DAO’s buyback wallet address will be publicly accessible for on-chain verification [1].

This proposal builds on prior reforms in Orca’s tokenomics, including the allocation of 20% of protocol fees toward weekly ORCA buybacks, the burning of $25 million worth of ORCA tokens, and the use of $19 million in USDC to fund core development teams. Additionally, $10 million was earmarked for opportunistic ORCA buybacks. The new proposal introduces greater flexibility for the Council to dynamically manage treasury assets [1].

Recently, Orca expanded its footprint in the Solana ecosystem with the launch of Wavebreak, a no-code token deployment tool tailored to retail traders. The tool includes anti-bot measures and community engagement incentives, positioning Orca in the launchpad space alongside competitors like Raydium and pump.fun [1].

The governance process for the proposal included discussions at Council meetings on May 15 and July 15, 2025, and an initial on-chain approval. The process followed a 4-day discussion period for community feedback, a 5-day voting period requiring 4 Council votes for approval, and a 2-day cooling period during which token holders can veto the proposal if 1 million ORCA votes are cast against it [1].

The proposal recently passed the voting threshold with 4 Council votes. If no veto is triggered during the cooling period, the Council will proceed with implementation.

Orca’s proposal exemplifies an emerging trend among leading Solana DAOs to deploy protocol revenue and treasury assets more actively to enhance long-term value for token holders. Similar moves have been observed at Jito DAO, which has committed 100% of its block engine and BAM fees to the DAO treasury [1].

By pegging $SOL and launching a structured token buyback, Orca aims to improve protocol performance, reward token holders, and reinforce long-term sustainability.

Source:

[1] Orca DAO Proposes Deployment of 55,000 SOL and 400,000 USDC for Buyback Initiative

https://solanafloor.com/zh/news/orca-dao-proposes-deployment-of-55-000-sol-and-400-000-usdc-for-buyback-initiative