TechFlow news, January 3rd, Solana founder toly responded on Twitter to Jupiter's co-founder regarding the question of "whether to continue token buybacks or provide growth incentives for existing users," stating:
"Capital formation itself is extremely difficult—traditional finance typically takes over 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, through the mechanism, dilute those unwilling to hold long-term. Protocols can accumulate profits as protocol assets that can be claimed by tokens in the future, allowing users to lock and stake for a year to obtain token rewards. As the protocol's balance sheet continues to expand, those choosing long-term staking will gain a larger actual equity share."
When asked "how to prevent delta-neutral short arbitrage," toly stated: "Equity itself is linked to the future profits of the protocol and grows continuously with future earnings."
Previous news, Jupiter's co-founder sought community opinions on "whether to suspend JUP buybacks."
