Request for Transparency on Treasury Buybacks and Development Spend (50% of Fees)

Hi Orca Council / team and all tokenholders.

To be clear upfront: this post is not an “attack” and not FUD. It’s a request for predictability and verifiable transparency on two governance decisions that directly impact ORCA holders and trust in the protocol.

TL;DR

  1. Regarding the summer-approved proposal “ORCA Treasury Utilization for Token Buybacks and Validator Staking”, the community still lacks a clear buyback mechanism: when buybacks happen, in what amounts, and what happens to the repurchased ORCA.
  2. Regarding last year’s fee distribution decision 20% / 30% / 50%, there is still no clear breakdown of where exactly the 50% “for development” goes, and how that spending maps to the roadmap and delivered outcomes.

The core issue in both points is the same: lack of transparency → lower trust → lower willingness to hold/stake long term.


1) Treasury Buybacks: we need a transparent mechanism and reporting

The problem: the proposal was approved, but the “execution” side still looks too vague to the community. As a result, holders are asking:

  • the buyback program described in the proposal hasn’t started, USDC is sitting in the wallet — why is the program effectively “paused”? Over ~6 months, zero tokens were repurchased;
  • what decision logic is being used?
  • where do repurchased ORCA tokens go? Based on the proposal text, they should be routed to xORCA — is that correct? Right now, we can’t verify.

What we’d like clarified (specific questions)

A. Status and timeline

  • What exact date marks the start of the 24-month program window?
  • Have buybacks started? If yes — since what date? If not — when is the planned start, and why has it been delayed?

B. Execution policy (what’s missing today)
Yes, the Council can have discretion (“depending on market conditions”), but the community needs a clear policy:

  • Is this DCA (regular purchases on a schedule) or opportunistic buying based on conditions?
  • What are the triggers to buy vs pause? (e.g., volatility, events, liquidity, volume)
  • What execution tools are used: DEX (TWAP/limit/market) or via a market maker?
  • If a market maker is used — what guardrails/constraints exist so it’s transparent and doesn’t look like a “black box”?

C. What happens to repurchased ORCA
The proposal (at a high level) mentions options like burn / staking rewards / grants. But we need the practical rules:

  • Is there a target priority? For example: “mostly burn,” or “mostly to xORCA,” or a mixed approach with ranges.
  • Will repurchased tokens go to stakers/xORCA? If yes — under what conditions and in what proportions?
  • If some tokens go to grants — will there be a public process and a list of recipients (at least post-factum), so it doesn’t look like “tokens were handed out to insiders”?

D. Why this matters right now
One of the arguments for buybacks is to improve the efficiency of Treasury usage, especially when ORCA looks undervalued relative to SOL and/or near historical lows in USD terms. A reasonable holder question is:

  • If not now, then when?
  • What logic defines a “good time” to buy back?

2) “50% for development” spend: we need a clear breakdown and linkage to outcomes

Previously, the protocol fee distribution was set as:

  • 20% → programmatic ORCA purchases intended for stakers (xORCA)
  • 30% → Treasury
  • 50% → development/team/operations

The community is not arguing that the product shouldn’t be funded: payroll, audits, infrastructure, legal, etc. The issue is that today, for most tokenholders, this 50% still looks like a “black box.”

What we’re asking for (practical, non-invasive)

A. A public quarterly “Development & Ops” report
Without exposing personal data or naming individual salaries — categories and order of magnitude are enough:

  • How much flowed into the “50% dev bucket” for the quarter (USD/SOL/USDC — whichever is easiest)
  • Spend breakdown by category (ranges are fine):
    • Engineering/Product (payroll)
    • Contractors
    • Security (audits, bug bounties)
    • Infrastructure/hosting/tooling
    • Legal/compliance
    • Marketing/community
    • Partnerships/BD
    • Other (with a short note)
  • Current operating scale (e.g., total FTE count, no names needed)
  • Very brief: what key releases/results shipped this quarter and what’s planned next

B. Governance alignment and the “trustless” ethos
If such reporting already exists internally, a sanitized public version can be shared. Tokenholders are not asking for “doxxing,” but they do want accountability — confidence that this 50% is actually turning into product/security/growth.


If I missed existing quarterly reports on buybacks or dev spend, please share links. I will edit this post and mark the questions as resolved/partially resolved.

Thank you. I genuinely believe transparency here is not “optional,” but a competitive advantage and a foundation of trust — which is exactly what a crypto project should be built on.

Good discussion! I also hope we are improving transparency. During the competitive environment on Solana, although the development team takes 50% fee, we don’t see excellent progress for now. I agree that the team needs fund to bring success to Orca, but the outcome is not good. If DAO and the team don’t take active actions, I am afraid that Orca is going to lose the competition. In all, more effectual measures need to be implemented now, and we are in red code. I hope the very success for Orca and let us take action!

A very reasonable proposal, IMO, could not agree more

When it comes to buybacks, yes, it would be great to have a some kind of a decision framework. So far, if I’m correct, the only specific point that was mentioned is a max cap of 2% of average (MA30) daily trading volume, which makes total sense, but it’s not sufficient alone.

In addition, it would be great to have a separate dashboard visualising the progress of a buyback initiative, summarizing all related activities, timelines and the set of rules that is used in decision-making so that each transaction can be verified against these rules, if desired

Regarding the development team’s transparency, I’d suggest to have a public roadmap. It shouldn’t be by any means exhaustive, and should contain only high-level features/items instead. This will provide enough transparency for the development efforts in foreseeable future.

Also, would make sense to set up some kind of a issue collector, where LPs and other users can propose and vote for upcoming features and have some % of time of devs to be allocated to this community-proposed feature set.

Thank you for your constructive request for a progress update on prior governance decisions. As Orca matures, we recognize that professional financial standards—including clear reporting and execution guardrails—are critical for maintaining long-term trust and commitment from ORCA tokenholders and stakers.

Orca’s primary objective is the disciplined allocation of capital to maximize protocol value. Below is our formal response to the points raised.

1) Treasury Buybacks: Strategy & Execution Policy

The Council understands the concern regarding the apparent “pause” in treasury-led buybacks. To be clear, the Council has prioritized yield-generation and programmatic stability over discretionary market purchases during periods of high volatility.

A. Current Status & Strategy

  • The 24-Month Window: This program formally began in July 2025 following governance approval. While execution was not mandated to start on Day 1, this timeframe serves as our window for opportunistic deployment.

  • Validator Staking: Rather than immediate market buys, we elected to stake all treasury SOL to the Orca Validator. This strategy generates a consistent staking yield and block rewards for the treasury, effectively increasing the “dry powder” available for future ORCA repurchases.

  • Programmatic Priority: Approximately 1.33M ORCA has been programmatically purchased and deposited to the xORCA liquid staking contract for the benefit of participating ORCA tokenholders. The Council hears the request from the community for increased buybacks and believes this systematic, script-based approach is more appropriate in current market conditions than sporadic discretionary buys from treasury given other factors discussed herein. Accordingly, the Council has recently increased the percentage of protocol fee revenue utilized to programmatically purchase ORCA to be deposited as rewards for xORCA stakers from 20% to 40%.

  • Competing Treasury Bids: Orca’s initial development team has opportunistically executed open-market purchases of 1.8M ORCA to fund incentive-aligned grants for contributors and new hires (subject to at least a four-year lock-up and one-year eligibility period), and has approximately $7.2M remaining that are earmarked for buybacks.

  • Research & Development Investment: The Council recently invested 500K USDC of the treasury in an R&D exercise of a new confidential product experiment of the initial development team. The principle of the grant and yield generated from the testing exercise will be returned to the treasury at the expiration of the two-month testing period which began on January 1, 2026.

B. Execution Policy & Guardrails

To remove the “black box” element, all future opportunistic buybacks (utilizing USDC and validator yield) will follow these institutional-grade constraints:

Parameter Policy
Execution Method Managed via a professional Market Maker for optimal execution.
Strategy Opportunistic buys based on market conditions for the treasury.
Slippage Control Hard cap at 1%, with a preference for 0.75% to minimize value leakage.
Volume Constraint Daily purchases will not exceed 10% of the 24-hour trading volume.

Commitment: the Council will publish the specific wallet addresses and a public reporting format to ensure on-chain verifiability after initializing opportunistic buybacks for the treasury.


2) “50% Development” Spend: Operational Transparency

As protocol fees are generated, they flow to the Foundation which allocated 50% to the ORCA tokenholder treasury (of which 40% now flows to xORCA buybacks and 10% to the treasury) and 50% to the initial development team to fund its operations. While Orca operates in a competitive landscape, we are committed to provide additional transparency with how this capital is spent.

A. Current Operational Scale

  • Human Capital: the initial development team currently has about 42 Full-Time Equivalents (FTEs), and

  • Run Rate: its aggregate operating expenses are approximately $11M per year.

B. Forthcoming Reporting

The Council has requested that the development team provide a Quarterly Performance & Financial Report to the ORCA tokenholder governance community by mid Q1 2026, which will provide additional transparency and will include the following:

  • Financial Reporting: A summary of aggregate inflows from protocol fees and a refined breakdown of both revenue and operating expenses, including high level categories of major cost centers.

  • Performance & Roadmap: An analysis of performance over the prior period, highlights of key product releases and achievements of other business objectives, as well a description of the roadmap ahead. In the meantime, here is a recap of recent product releases.


3) Strategic Leadership: Advocacy & “Project Open”

The Orca community prides itself on not merely being a passive participant in the Solana ecosystem; we are active architects of its strategic and regulatory future. Orca has long believed that sustainable protocol value is inextricably linked to a clear policy environment that supports innovation. To that end, Orca’s development team has taken a leading role in global policy advocacy, including in the United States, the United Kingdom and Korea.

Key highlights from recent policy engagement by Orca’s initial development team include:

  • Partnering with the Solana Policy Institute in Project Open, a high-stakes advocacy initiative seeking to compliantly bring U.S. public equities onto Solana DeFi.

  • Holding in-person briefings on U.S. crypto policy with the White House, the SEC, and dozens of Senate and Congressional Offices, with the objective to progress the conversation from abstract skepticism of decentralized finance (DeFi) to a concrete understanding of Orca’s peer-to-protocol technology and its groundbreaking potential with a wide array of assets, including public equities. They also met with lawmakers in the United Kingdom, Korea, Singapore, and the United Arab Emirates. By educating lawmakers on the mechanics of automated market makers (AMMs) and decentralized governance, Orca’s community is helping to shape the blueprint for responsible, pro-innovation policy.

As a result of these efforts, the Orca community is helping define how DeFi can remain true to its core values—permissionlessness, transparency, and user ownership—while continuing to thrive through a period of global regulatory evolution. This ensures that Orca, and the broader Solana ecosystem, remains resilient without compromising what makes DeFi unique and powerful.

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