Market Reaction

The market reacted quickly to the proposal, with $ORCA surging 84% following its circulation. Separate research put the gain at over 80% in the week leading up to October 7, 2026.

Proposal Details

The proposal, titled 'Resourcing Orca for Its Next Phase,' includes three major changes. First, it proposes to split protocol fees 10% to xORCA staking rewards and 10% to team-managed buybacks. The remaining 80% will go to operations. Second, it involves moving approximately 14.2 million ORCA tokens out of the community treasury and into a new Strategic Account controlled by the team. Third, it calls for dissolving the current Governance Council.

Acquisition Pitch

The centerpiece of the proposal is the strategic purchase of an unnamed leading Solana DeFi protocol. The plan frames this deal as a way to add credit and yield products to Orca's lineup. The acquisition is anticipated to contribute to roughly a 50% increase in Orca's Total Value Locked, or TVL.

Criticisms and Controversies

Critics have centered on two points. The first is reduced staking rewards, as xORCA stakers would receive only 10% of fees under the new split. The second is concentrated power, as moving a large slice of the treasury into a team-controlled account while dissolving the Governance Council shifts influence away from token holders and toward the team.

Community Reaction and Next Steps

The proposal will be voted on by the community by October 10, 2026. Investors are being asked to price in an acquisition they cannot yet evaluate, as the target has not been named. The market's verdict, so far, suggests that the plan is gaining traction, but it remains to be seen whether the promised credit and yield products arrive and whether TVL moves anywhere near the projected 50% increase.