Solana founder Toly: Instead of buybacks, a long-term capital structure should be built through staking mechanisms

SOL1,78%

PANews January 3 News, Solana founder toly posted on X platform in response to Jupiter co-founder’s question about “whether to continue token buybacks or provide growth incentives for existing users,” stating: “Capital formation itself is very difficult—traditional finance usually takes more than 10 years to truly achieve capital accumulation. Compared to buybacks, I believe a more reasonable approach is to replicate this long-term capital structure. In the crypto industry, the closest mechanism to this is staking. Participants willing to hold long-term will dilute those unwilling to hold long-term through the mechanism. The protocol can accumulate profits as future protocol assets that can be claimed by tokens, allowing users to lock and stake for a year to earn token rewards. As the protocol’s asset-liability sheet continues to expand, those who choose long-term staking will gain a larger share of actual rights.” When asked about “how to prevent delta-neutral short-selling arbitrage,” toly said: “The rights themselves are linked to the protocol’s future profits, which will continue to grow with future earnings.”

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Xerodollarvip
· 01-03 17:50
good read, but why is everyone acting like buy backs don't stabilise chat?
Reply0