Solana Founder Discusses Long-Term Capital Formation Strategies

According to Foresight News, Solana founder Toly recently addressed a query from Jupiter co-founder regarding whether to continue token buybacks or provide growth incentives for existing and new users. Toly emphasized the challenges of capital formation, noting that in traditional finance, funds with a duration of over ten years typically require a decade to mature. He suggested that emulating this setup is preferable to buybacks. In the cryptocurrency sector, the closest practice to this is staking. Toly explained that some long-term holders dilute the stakes of those unwilling to hold for extended periods. He proposed storing profits as tokens that can be claimed as future protocol assets, encouraging people to lock and stake for a year to earn token rewards. As the balance sheet grows, the stakes for those who participate in staking would increase.