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

The founder of Solana, toly, responded to Jupiter's co-founder on the X platform regarding the question of "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 complete capital accumulation. Compared to buybacks, I believe a more reasonable path is to replicate this long-term capital structure.

In the crypto industry, the mechanism closest to this is actually staking. Participants willing to hold long-term will, by design, dilute those who are not willing to hold long-term. The protocol can accumulate profits as future protocol assets that can be claimed by tokens, allowing users to lock up and stake for a year to earn token rewards. As the protocol's balance sheet continues to expand, those who choose long-term staking will gain a larger share of actual equity. The equity itself is linked to the protocol's future profits, which will continue to grow with future earnings."