Why Is ORCA Going Up? A Deep Dive Into the Latest Governance Proposal

ORCA, the Solana-based decentralized exchange token, has captured market attention with a powerful rally—up over 75% in just seven days and 120% over the last month. 

Behind the surge is a major governance proposal that could reshape the token’s economic model and future value. But is the price action just hype, or does this signal a longer-term trend?

Let’s unpack the key elements of the proposal and what they mean for ORCA holders.

Read More: How to Buy Orca

Key Takeaways

• ORCA is up 76.8% in the past week amid a governance vote that includes token buybacks, burns, and staking incentives.
• The proposal suggests burning 25% of the token supply and using $10M in treasury funds for open market buybacks.
• A new incentive structure aims to reward long-term holders and fund protocol development through 2027.

ORCA's Price Action: What’s Behind the Surge?

As of now, ORCA is trading at $3.34, with a daily gain of over 9% and more than 120% growth in the last 30 days. The total market cap sits at $189 million, supported by a strong 24-hour trading volume exceeding $137 million. 

This isn’t just a speculative pump—it’s backed by meaningful developments from the Orca DAO.

Breaking Down the Governance Proposal

Token Buybacks and Burns

The most significant part of the proposal involves a $10 million buyback of ORCA tokens from the open market using protocol treasury funds. This aggressive repurchasing plan would create buy pressure and reduce circulating supply—key factors in driving price appreciation.

Additionally, 25% of the total token supply is set to be permanently burned. This supply cut could push ORCA into a deflationary phase, making each remaining token scarcer and potentially more valuable.

Staking Incentives from Protocol Fees

Under the proposal, protocol fees generated by the DEX will be programmatically used to reward stakers. Instead of idle capital sitting in the treasury, those fees would continuously buy ORCA from the market and redistribute it to long-term holders, effectively creating yield-backed incentives.

Long-Term Dev Team Funding

The vote also includes a two-year funding plan for the development team, ensuring stability and continued innovation without needing new capital raises. It’s a clear signal that the protocol is playing the long game.

Will the Proposal Pass?

Voting is currently underway, and according to Orca’s governance dashboard, participation is strong with the proposal gaining traction among the community. 

If passed, it could mark a major turning point in how the protocol aligns incentives for growth, decentralization, and long-term sustainability.

What’s Next for ORCA?

If the governance proposal is fully approved and executed, we could see:

• Increased token scarcity due to the 25% supply burn.
• Long-term buy pressure from protocol-funded repurchases.
• A sustainable staking ecosystem that draws more capital and users.

These dynamics could support a longer-term rally—not just a short-term speculative spike.

FAQs

1. What is ORCA’s current market price and supply?

As of writing, ORCA trades at $3.34 with a circulating supply of 55.7 million tokens and a max supply of 100 million.

2. When does the ORCA governance vote end?

Voting is currently ongoing and is expected to conclude within the week. Community members are encouraged to participate via the Orca DAO portal.

3. How will ORCA buybacks affect the token price?

Buybacks reduce circulating supply and create additional demand, which can lead to price increases, especially when paired with token burns.