Solana co-founder Anatoly Yakovenko (toly) has floated a radical tweak to protocol treasury management: stop burning cash on token buybacks, and instead let users stake profits as future-claimable assets. Speaking directly to the Jupiter Exchange team, Yakovenko proposed that token holders lock up for one year to earn yield tied to the protocol's expanding balance sheet — the longer they stay, the larger their relative claim grows.
The Lock-Up Thesis: Penalize Flips, Reward Locks
Under Yakovenko's model, short-term traders face gradual dilution while committed stakers accumulate outsized rewards over time. "Let people lockup and stake for a year to get a token yield. As the balance sheet grows, those who stake net a bigger claim," he told Jupiter's core team during a livestreamed conversation. The approach mirrors veTokenomics seen in protocols like Curve, where time-weighted voting power concentrates value to patient capital.
Crypto commentator Joe called it "real value capture," adding: "I'm watching closely — this could strengthen Solana's ecosystem while rewarding patient participants."
Did Jupiter's $70M Buybacks Move the Needle?
The proposal was triggered by doubts raised by Siong, a key Jupiter figure, about the effectiveness of the DEX's massive buyback program. "More than $70 million spent on buybacks over the past year showed limited long-term movement," Siong said. DappRadar data shows Jupiter processed $169.8 million in monthly volume with 1.48 million unique users, trailing only Raydium ($793.8M, 3.67M wallets) and Meteora ($9.38M, 1.67M wallets) among Solana exchanges. Despite rankling high activity, the buybacks failed to ignite sustained price action.
Siong suggested reallocating funds to user acquisition and loyalty rewards. Yakovenko agreed, emphasizing that sustainable value in crypto should mirror long-term investing in traditional finance: "Simple buybacks don't build lasting value — structured staking can achieve better outcomes over time."
Solana On-Chain Activity Remains Elevated
The debate comes as Solana's DEX ecosystem sees record engagement. With Raydium alone posting 3.67 million active wallets in 30 days, the chain's revenue base is gaining depth. Aligning staking incentives with user growth — as Yakovenko's model proposes — could create a feedback loop that amplifies protocol value far beyond what flat buybacks can deliver.