Solana Co-Founder Advocates Staking Over Buybacks for Ecosystem Growth

VADODARA, January 3, 2026 — Solana co-founder Anatoly Yakovenko has argued that staking offers a more positive path for ecosystem growth than token buybacks, sparking a critical debate in tokenomics. This daily crypto analysis examines the implications for Solana's market structure and broader crypto capital flows.

Market Context & Background

Token buybacks have surged as a mechanism to boost prices and reward holders, mirroring corporate stock repurchases. According to on-chain data, projects like Jupiter (JUP) on Solana have actively debated this approach. Yakovenko's stance challenges this trend, advocating for staking as a superior long-term capital accumulation tool. Market structure suggests this shift could redefine liquidity profiles across decentralized finance (DeFi). Related developments include significant whale movements in Ethereum and rising VC investments amid market fear, highlighting contrasting capital strategies.

What Happened?

On January 3, 2026, Anatoly Yakovenko posted on X, arguing that staking is more rational than token buybacks for ecosystem growth. He proposed a model where profits are designated as future claimable tokens, incentivizing users to lock up assets for a year. Under this system, stakers' claimable tokens increase as the asset base expands. His remarks followed discussions by Jupiter co-founders on whether to continue their buyback program or provide user incentives. According to the official Ethereum.org documentation, staking mechanisms vary, but Yakovenko's focus on long-term dilution aligns with Proof-of-Stake (PoS) principles.

Technical Analysis & Price Action

Solana (SOL) currently trades at $130.73, up 2.19% in 24 hours. Volume profile indicates weak accumulation near this level. RSI sits at 45, suggesting neutral momentum. Key support lies at $125.50, a Fibonacci 0.618 retracement from the recent swing high. Resistance is established at $135.80, an order block from last week's sell-off. Bullish invalidation: A break below $120.00 would signal a liquidity grab and potential downtrend. Bearish invalidation: A close above $140.00 could fill the fair value gap (FVG) and target $150.00.

By The Numbers

Why It Matters

Institutional impact: Yakovenko's model could attract long-term capital, reducing sell pressure and enhancing network security through staking. Retail impact: Users may shift from short-term trading to locked staking, altering liquidity dynamics. Historical cycles suggest that sustainable tokenomics, like Ethereum's post-merge issuance model, drive long-term value. On-chain forensic data confirms that staking reduces circulating supply, potentially creating gamma squeeze conditions during rallies.

Community Sentiment

Market analysts on X are divided. Bulls argue that staking aligns incentives and reduces volatility. Bears counter that buybacks offer immediate value and flexibility. No direct quotes from figures like Michael Saylor are available, but sentiment leans toward experimentation with hybrid models.

Price Prediction / Future Outlook

Bullish case: If SOL holds $125.50 and staking adoption rises, a rally to $150.00 is plausible, driven by reduced liquid supply. Bearish case: A break below $120.00 could trigger a sell-off to $110.00, especially if buyback programs are abandoned without staking offsets.