Toly comments on Jupiter's buyback issue: Staking is better than buyback, as it can dilute short-term holders.

Deep Tide TechFlow News, January 3rd, Solana founder toly tweeted in response to Jupiter co-founder’s question about “whether to continue token buybacks or provide growth incentives for existing users” and stated:

“Capital formation itself is very difficult—traditional finance usually takes more than 10 years to truly accumulate capital. Compared to buybacks, I think a more reasonable approach is to replicate this long-term capital structure. In the crypto industry, the closest mechanism to this is staking. Participants willing to hold long-term will dilute those unwilling to hold long-term through the mechanism. The protocol can accumulate profits as future protocol assets claimable by tokens, allowing users to lock and stake for a year to earn token rewards. As the protocol’s asset-liability sheet continues to expand, those who choose long-term staking will gain a larger share of actual rights.”

When asked “how to prevent delta-neutral short-selling arbitrage,” toly said: “The rights themselves are linked to the protocol’s future profits, which will grow with future earnings.”

Previously, Jupiter co-founder solicited community opinions on “whether to suspend JUP buybacks.”