- Yakovenko suggests storing profits as claimable assets, letting stakers earn bigger yields over time.
- Jupiter’s $70M buybacks showed limited impact; reallocating funds could better incentivize growth and user engagement.
- Top Solana exchanges show high activity; aligning staking with adoption could strengthen ecosystem value.
Solana co-founder Anatoly Yakovenko (toly) recently suggested a fresh strategy to strengthen crypto protocol value. Speaking to the Jupiter Exchange team, Yakovenko recommended storing profits as future, claimable protocol assets. He explained that token holders could stake or lock tokens for one year, earning yield as the protocol’s balance sheet grows.
This approach aims to reward long-term holders while discouraging short-term flips, potentially creating more durable value than traditional buybacks. The conversation emerged after Siong, a core Jupiter figure, questioned the efficiency of the platform’s $70 million token buybacks, noting limited price impact despite significant spending.
Besides questioning buybacks, Siong highlighted alternative uses for funds, such as growth incentives to attract new users and reward loyal participants. “More than $70 million spent on buybacks over the past year showed limited long-term movement,” he said.
By reallocating resources, the protocol could foster broader community engagement. Yakovenko agreed, emphasizing that sustainable value creation in crypto mirrors long-term investment in traditional finance. He added that simple buybacks might not build lasting value, and structured staking could achieve better outcomes over time.
How Staking Could Reshape Tokenomics
Yakovenko’s staking model encourages long-term commitment by rewarding holders who lock their tokens. Consequently, short-term holders face gradual dilution, creating stronger alignment between the community and protocol growth.
“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,” Yakovenko said. This approach mirrors mechanisms used by other successful protocols, where patient participants benefit disproportionately over time.
Joe, a crypto commentator, noted, “locking profits as claimable assets adds real value… I’m watching closely, this could strengthen Solana’s ecosystem while rewarding patient participants.”
Additionally, Jupiter Exchange ranks among the top five most used exchanges on Solana. DappRadar reports that Raydium led the 30-day trading charts with $793.8 million in volume and 3.67 million active wallets.
Meteora followed with $9.38 million volume and 1.67 million wallets. Jupiter attracted 1.48 million unique users, generating $169.8 million in monthly volume. Hence, aligning staking and treasury strategies with user growth could amplify platform adoption.
