Solana founder responds to Jupiter co-founder token buyback issue: Staking is more beneficial for the protocol's capital structure

CoinVoice has learned that Solana founder toly posted on X platform in response to Jupiter co-founder about whether to continue token buybacks or provide growth incentives for existing users. He stated: “Capital formation itself is very difficult; traditional finance usually takes more than 10 years to truly accumulate capital. 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 balance sheet continues to expand, those who choose long-term staking will gain a larger actual equity share. The equity itself is linked to the protocol’s future profits and will continue to grow with future earnings.”