Solana Founder Responds to Jupiter Co-founder's Token Buyback Question: Staking is More Beneficial for Protocol Capital Structure

Odaily News Solana founder toly posted on platform X in response to Jupiter co-founder's question regarding "whether to continue token buybacks or provide growth incentives for existing users." He stated: "Capital formation itself is very difficult; traditional finance often takes over 10 years to truly complete capital accumulation. Compared to buybacks, I believe a more reasonable path is to replicate this long-term capital structure. Within the crypto industry, the mechanism closest to this is actually staking. Participants willing to hold long-term will, through the mechanism, dilute those unwilling to hold long-term. The protocol can accumulate profits as protocol assets claimable by tokens in the future, allowing users to lock and stake for one year to obtain token rewards. As the protocol's balance sheet continues to expand, those choosing long-term staking will gain a larger share of actual equity. The equity itself is linked to the protocol's future profits and grows continuously with future earnings."