Orca DAO Proposes Deployment of 55,000 $SOL and 400,000 $USDC for Buyback Initiative

Orca DAO has introduced a new governance proposal that would authorize the use of treasury funds to stake $SOL into the Orca validator and initiate a 24-month buyback program for the $ORCA token. If approved, the Orca Governance Council would gain the authority to manage up to 55,000 $SOL and $400,000 USDC in the DAO treasury, directing it toward validator operations and strategic open market purchases of $ORCA.

This initiative reflects a broader shift in DAO governance toward more active financial management and long-term alignment with token holders.

Proposal Objectives

The proposed treasury plan has three primary goals:

1. Stake treasury-held $SOL in the Orca Validator to support faster transaction propagation across the protocol.

2. Launch a structured buyback program that uses treasury-held $SOL and $USDC to purchase $ORCA tokens over a 24-month period.

3. Utilize repurchased tokens to either reduce circulating supply through burns, increase xORCA rewards, or allocate funds as ecosystem grants.

Overview

Under the proposed plan, all $SOL in the DAO Treasury Wallet would first be staked into a dedicated validator, the Orca Validator. The validator would improve transaction propagation across the Orca protocol by providing a node optimized for Orca’s usage patterns. The Council would retain flexibility to periodically withdraw $SOL from staking as needed to fund the buyback program.

The Council would use treasury assets to purchase $ORCA tokens on the open market, capping daily purchases at 2% of $ORCA's 30-day average trading volume. This cap aims to prevent excessive volatility and reduce the risk of market distortion. The Council would deploy these purchases via decentralized exchanges or through partnerships with market makers.

Repurchased $ORCA would be stored in the DAO Treasury’s multi-signature wallet and allocated in one of three ways: burned to reduce supply, distributed to xORCA stakers or used to fund ecosystem grants.

To manage risk, the Council would pause buybacks during periods of high volatility, defined as price swings greater than 15% within a 24-hour window. Additionally, the Council would monitor exchange rates (SOL/USD, SOL/ORCA, ORCA/USD) to optimize capital use.

The proposal requires the Council to publish quarterly reports that include the total number of tokens purchased, average acquisition prices, costs, and remaining funds. The DAO Buyback Program wallet address will be made publicly accessible for onchain verification.

Previous Context

Orca DAO first proposed the Orca Token Revenue Share Model back in March, and SolanaFloor did a deep dive into the impact of the proposed token buybacks. That model outlined using 50% of protocol fee revenue for staking rewards and potentially for token buybacks. The analysis from SolanaFloor Data Insights highlighted the potential for significant deflationary effects if the DAO directed the entire $46.7 million in projected annual revenue to buybacks. Under such conditions, Orca could remove nearly 19.4 million $ORCA from circulation annually, which represents an annual deflation rate of 19.4% based on the circulating supply at the time. While the current proposal is distinct, it builds on the same premise that structured buybacks could significantly reduce supply and benefit long-term token holders.

In April, Orca DAO passed a sweeping set of changes to its tokenomics, including allocating 20% of protocol fees for weekly ORCA buybacks, the burn of 25 million $ORCA tokens and the allocation of $19 million in USDC to fund the core development team. It also earmarked $10 million for opportunistic ORCA buybacks. The new proposal builds on this foundation by giving the Council greater flexibility to manage treasury assets dynamically.

Orca has also recently expanded its footprint in the Solana ecosystem. Last week, it entered the launchpad space with the release of Wavebreak, a no-code token deployment tool that joins offerings from Raydium and pump.fun. Designed to support retail traders, Wavebreak includes bot-resistant features and incentives for community participation.

Governance Process

The proposal was discussed during the Council’s meetings on May 15 and July 15, 2025, where it received preliminary approval for onchain voting. The governance process includes a discussion period running for a minimum of 4 days for community feedback, a 5-day voting period where 4 Council votes are required for approval and a veto window which is a 2-day cool-down period during which token holders can veto the proposal if 1 million $ORCA votes are cast against it.

Voting for the proposal went live a few hours ago, and the required 4 Council votes for approval have already been secured.

If the veto threshold is not met before the cool-down period ends, the Council will proceed with implementation.

Conclusion

Orca DAO’s proposal reflects an emerging strategy among leading Solana DAOs to deploy protocol revenues and treasury assets more actively. Jito DAO recently advanced a similar agenda by directing 100% of its Block Engine and BAM fees into its DAO treasury to reinforce long-term value for token holders.

By staking $SOL and initiating a structured token buyback, Orca aims to support protocol performance, reward token holders, and strengthen long-term sustainability.

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