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Orderly Proposal Plans Token Buybacks and Staking Rewards Overhaul

Orderly’s official proposal outlines allocating up to 60% of protocol fees for token buybacks, redistributing rewards via esORDER, and revising governance under the VALOR mechanism.

USDC

Summary

According to an official proposal, the Orderly community may direct up to 60% of net protocol fees toward ORDER token repurchases. Half of these repurchased tokens would be distributed to stakers as esORDER, while the other half would be allocated for governance purposes. The plan also ends USDC-based staking rewards and introduces optimizations to the VALOR mechanism, with voting open for a seven-day period.

Terms & Concepts
  • Token Buyback: A mechanism where a protocol repurchases its tokens from the open market to reduce supply and potentially support price stability.
  • esORDER: A staking reward token representing escrowed ORDER, distributed to participants as part of the new rewards system.
  • VALOR Mechanism: A newly proposed framework by Orderly to preserve staking rights while replacing the existing USDC-based reward system.