toly commented on Jupiter's co-founder buyback issue: Profits could be stored, allowing users to lock and stake them for a year to earn token rewards.
TL;DR
Solana founder Toly suggests Jupiter emulate long-term capital formation via staking instead of buybacks, storing profits as tokens for future redemption and rewarding users who lock and stake for a year.
Tags
According to Foresight News , Solana founder Toly tweeted a reply to Jupiter co-founders regarding whether to continue token buybacks or provide growth incentives for existing and new users. He stated, "Capital formation is extremely difficult. Funds with a lifespan of 10 years or more take 10 years in TradeFi. I think it's better to emulate that setup rather than do buybacks. The closest thing to do in crypto is staking. Some holders willing to hold long-term dilute the equity of those who are not. Profits are stored as tokens that can be redeemed for protocol assets in the future. People lock up and stake for a year to earn token rewards. Therefore, as the balance sheet grows, the stakers gain more equity."