Summary
If passed, this proposal will:
(i) authorize the ORCA Governance Council (the “Council”) to stake any or all the SOL in the ORCA DAO Treasury (DWo8SNtdBDuebAEeVDf7cWBQ6DUvoDbS7K4QTrQvYS1S) (the “Treasury Wallet”) as it deems appropriate into a validator node (the “Orca Validator”) dedicated to users of the Orca protocol for faster transaction propagation on Orca; ands
(ii) authorize the Council to utilize any or all of the SOL and USDC in the Treasury Wallet to purchase ORCA tokens on the open market (the “DAO Buyback Program”) over the next twenty-four (24) months at the time, price and amounts it deems appropriate based on market conditions, provided (A) all such repurchased ORCA tokens are stored in the Treasury Wallet until they are either burned to reduce circulating supply or used as xORCA staking rewards or ecosystem grants, and (B) the Council produces quarterly reports on the DAO Buyback Program purchases are produced to ORCA tokenholders.
Description
Currently, all Orca protocol fees are programmatically distributed as follows: (i) 20% is allocated to automated purchases of ORCA and deposited into the xORCA staging wallet (J4Y2ryHy32uiBNksCQ65Ati2euAUQWgd5UHU31oRtncS) to be distributed to the xORCA pool once it is developed and launched, which will be available to ORCA tokenholders who stake their ORCA; (ii) 50% to fund continued development of the protocol; and (iii) 30% to the Treasury Wallet. This proposal would authorize the Council to use the 30% flowing to the Treasury Wallet as stake weight in the Orca Validator and to purchase ORCA tokens from the market to then be burned, distributed as additional xORCA staking rewards, or for ecosystem grants as part of the DAO Buyback Program.
Treasury Proposal Details
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Funding: all of the SOL and USDC in the Treasury Wallet, which is currently approximately 55,000 SOL and 400,000 USDC.
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Execution: all of the SOL in the Treasury Wallet will first be staked in the Orca Validator and then withdrawn periodically as deemed appropriate to conduct the Orca Buyback Program, which will be deployed on decentralized exchanges or in partnership with market makers over the next 24 months, with daily purchases capped at 2% of ORCA’s 30-day average trading volume to minimize market impact.
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Buyback Program Storage and Use: Purchased ORCA tokens will be held in a multi-signature DAO Treasury Wallet. The Council intends to burn these tokens to permanently reduce ORCA’s circulating supply, distribute them as rewards to the xORCA pool, or use them as ecosystem grants.
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Buyback Program Risk Management: Purchases will pause during high volatility (ORCA price swings >15% in 24 hours). SOL/USD, SOL/ORCA, and ORCA/USD rates will be monitored to optimize fund use.
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Reporting: Quarterly reports on the governance forums will detail tokens purchased, costs, average price, and remaining funds. The on-chain wallet utilized for the DAO Buyback Program address will be public for blockchain verification.
Objectives
This treasury proposal seeks to:
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seed the Orca Validator to earn a return on the SOL currently in the Treasury Wallet and improve transaction propagation on the Orca protocol;
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launch a DAO Buyback Program to reduce ORCA’s circulating supply through token burning, increase rewards to xORCA holders, or fund ecosystem grants to incentivize continued development of the Orca protocol; and
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signal confidence in Orca’s role as a leading Solana DeFi protocol.
Risks
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Market Impact: Large purchases of the ORCA may cause volatility, mitigated by volume caps.
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Opportunity Cost: Funds used for buybacks reduce resources for other initiatives.
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Regulatory: Evolving regulations may affect buybacks; legal consultation will ensure compliance.
Conclusion
This proposal leverages the existing Treasury Wallet assets, and the ongoing 30% of Orca protocol fees programmatically flowing to the Treasury Wallet to improve transaction propagation on the Orca protocol, reduce circulating supply of the ORCA token by burning, increase xORCA staking reward returns, and fund further Orca ecosystem grants to promote continued development of the Orca protocol.
Council Discussions and Preliminary Approval
This was discussed during both the May 15, 2025 and July 15, 2025 Council meetings, and the Council endorsed this proposal for an on-chain vote.
Governance Process
Forum Discussion
This proposal will be posted here for a discussion period of at least 4 days before it is formally put to a vote. This period allows community members to review the details of the proposal and share feedback.
Voting
After 4 days, a council member may submit the proposal using their Council Token to the Signaling Governance account (6d76J…4HUf9)
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Voting Period: 5 days
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Council Threshold: 4 ‘yes’ votes
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Tokenholder Veto Threshold: 1,000,000 ORCA
Cool-down Period
This account also has a 2-day cool-down period, which begins after the initial 5-day voting period. In other words, if the proposal is passed after 5 days, the ORCA tokenholder community will have an additional 2 days to veto it.
Execution
If the veto threshold is not met during the cool-down period, then the proposal will pass and its contents will be implemented.
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