Orca DAO hopes to free up more resources before the arrival of a new growth phase.

Orca is one of the oldest DeFi protocols on Solana. After reaching acquisition terms with a "leading Solana DeFi protocol", this DAO proposed a governance initiative, planning to allocate resources and adjust the flow of protocol fees. If the acquisition is completed, this protocol will bring credit and revenue product lines to Orca.

However, despite the voting reportedly receiving unanimous support, members of Orca DAO still strongly opposed this proposal, which was described as "terrible," because the current scheme does not allow holders of $ORCA or $xORCA to vote.

At the same time, the market has responded positively to this proposal, with $ ORCA rising by 84% in trading over the past 7 days.

Orca DAO seeks growth in the new governance proposal

The latest governance proposal, with the identifier Orca DAO, was first released on September 29th, with the goal of "allocating resources for the next phase of Orca." This indicates that one of the oldest protocols on this Solana is preparing to venture into more challenging waters.

From a practical operation perspective, this proposal aims to restructure the existing repurchase plan of Orca. It involves investing $SOL from the community fund treasury into DeFi, and using $ORCA from the same treasury to acquire businesses and products that can expand the protocol.

Under the new structure, 80% of the protocol fees will be retained by Orca for ongoing development and growth. 10% will be used to repurchase $ORCA on the public market in a programmed manner and distributed to the holders of $xORCA. The remaining 10% will flow into another wallet controlled by the team, which may be used for repurchases as deemed appropriate.

All $ ORCA held in the community treasury wallet (approximately 14.2 million coins, valued at $40.4 million) will be transferred to an account controlled by the team and used for acquisitions.

All $ SOL in the community fee treasury will be transferred to the team-controlled wallet and will be used for productive deployment in Solana DeFi.

In addition to these major economic and operational changes, certain aspects of protocol governance will also be reorganized. The existing governance committee will be disbanded, and a more community-centered model will be adopted. At the same time, a verified and identifiable list of $ ORCA token holders will be established.

Currently, 40% of the protocol fees are directly used to repurchase $ORCA on the public market, 10% goes into the community fund, and the remaining 50% is used to support the growth of Orca. Although this model is well-received by token holders, the Orca team believes that it is not sustainable in the long run. The crypto industry is at a critical turning point, and if they want to expand effectively, the team needs more resources.

One of the growth initiatives is the proposed acquisition of a leading Solana DeFi protocol, which will expand Orca's products into the credit and income sectors and significantly diversify its revenue sources, helping the protocol to remain competitive in the continuously expanding market.

As of press time, it is expected that this proposal will pass with an overwhelming majority. However, despite the voting results showing a majority in favor, members of the $ ORCA community are still strongly criticizing this vote, arguing that its mechanism is set up in such a way that it will pass regardless of the wishes of the token holders.

Despite 100% support in votes, the holders still split.

Reviewing the Realms data confirms that the proposal for Orca will receive unanimous approval, with 100% of the votes in favor of these changes. The voting will continue until the end of the cooling-off period, which will take place on October 12th, with 5 days remaining from now.

However, despite the voting data seemingly indicating the opposite, the Orca community is actually strongly opposed to these changes. Critics have described the proposal as "terrible" and "harmful," and have condemned the mechanism that is alleged to have prevented them from voting.

The main concerns of opponents focus on the proposed acquisition terms not being clear enough. Critics believe that the acquisition will harm the interests of token holders through future pressure from the acquired party. Others are disappointed with the reduction in buyback and staking rewards, and also regret the dissolution of the governance committee.

In addition to the content of the proposal itself, critics also argue that this voting mechanism is merely providing an "illusion of democracy." Users who hold $ xORCA or have staked $ ORCA are not able to vote. Furthermore, there is a 7-day cooling-off period required to release the stake of $ xORCA, so holders may not have enough time to convert $ xORCA into $ ORCA and submit their votes.

Beyond these restrictions, the proposal to pass requires only 3 million "yes" votes. Even if the majority of votes are "no," the proposal will still be approved.

$ ORCA rose by 84% due to a rebound in trading volume

Although the holders of $ ORCA may be disappointed with this ongoing proposal, the market has provided them with some comfort. News of a potential acquisition has reignited market interest and demand for $ ORCA tokens, which have seen a 84% increase in trading over the past 7 days.

As one of the earliest DEX on Solana, and also a pioneer of the CLMM model, Orca has benefited from the influx of capital and the resurgence in trading activity of Solana.

Blockworks Data shows that the weekly trading volume of Orca has soared recently, rising from a low of $605 million in August to $2 billion in the first week of October.

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