Introduction

Orderly is at a turning point. As we transition toward a leaner, more sustainable design, we’ve paused trading incentives, restructured emissions-heavy flows, and are rolling out new products like Omnivaults.

But one critical component still lags, the way protocol revenue is distributed.

Currently, 60% of revenue is paid to stakers in USDC, idle capital that doesn’t grow the platform or support ORDER’s price. On top, staking yields haven’t offset the decline in ORDER’s price, weakening long-term holder retention and highlighting the need for a more sustainable model.

This proposal introduces a smarter way forward: redirect revenue to ORDER buybacks and place all purchased tokens into a community-controlled treasury.

Why Change the Current Model?

The current staking model has fallen short on multiple fronts:

• USDC payouts are passive, they don’t deepen liquidity or support ORDER’s price.
• Staking yields, while seemingly attractive, are offset by token volatility.
• Idle revenue paid to stakers sits disconnected from protocol growth and long-term value creation.

In contrast, the newly launched Omnivault:

• Delivers stronger, more consistent yields
• Actively contributes to protocol liquidity
• Aligns user incentives with Orderly’s long-term success

It shows that when capital is put to work in the right way, both user returns and protocol health improve.

This proposal applies the same principle to ORDER, replacing passive rewards with structured demand that strengthens the ecosystem and puts value back in the hands of the community.

The Proposal: Smarter Revenue, Strategic Buybacks

1. Pause VALOR Emissions

• VALOR emissions will be halted upon approval.
• VALOR holders keep their allocation intact and can claim their USDC share of the treasury whenever they want.
• Staking remains active, with esORDER and governance rights unchanged.

2. Redirect up to 60% of Protocol Revenue

• Up to 60% of revenue is allocated to market buybacks of ORDER.
• Buybacks are executed via TWAP using revenue from the previous two weeks.
• This replaces all previous USDC-based staking rewards.

3. Build a Community-Controlled Treasury

• All ORDER purchased via buybacks is sent to a multisig governed by the community.
• These tokens are removed from circulating supply until the community votes on their use (e.g., burns, liquidity, grants, growth campaigns).

4. Staking Utility Evolution

• Staking remains active and retains full governance rights.
• Additional staking benefits will be unveiled with new product launches.

** Buyback amounts and the percentage of the revenues allocated may vary over time and are subject to future changes based on protocol performance and governance decisions.

Projected Impact

At current revenue levels ($4–8K/day) and valuation, the new model could remove 1–2% of ORDER supply from circulation each year. Over time, as revenue scales, this creates:

• Continuous demand for ORDER
• Reduced sell pressure
• A protocol-owned treasury that the community can use strategically

Next Steps

If approved, we will:

• Immediately pause VALOR emissions (VALOR holders keep their allocation intact and can claim their treasury whenever they want)
• Begin executing revenue-backed buybacks next epoch (2 weeks after approval)
• Launch the multisig community treasury
• Reveal additional staking utilities in upcoming product releases

The Takeaway

We’re not only halting emissions, we’re building a smarter value loop: one that creates sustained demand for ORDER, cuts inflation, and gives the community the power to deploy value where it matters most.

The loop will continue evolving through upcoming updates, as we work to build a strong economy that benefits each of our stakeholders and fuels long-term platform growth.

Voting Details

To ensure transparency and fair participation, here are the key parameters for this governance vote:

• Quorum: 30% of total voting power must participate for the proposal to be considered valid.
• Voting Period: The vote will be open for 7 days from the time of submission.
• Eligibility: Only users who had staked ORDER before the proposal was submitted are eligible to vote. Staking ORDER after the proposal is live will not grant voting power for this vote.

We encourage all eligible stakeholders to review the proposal thoroughly and participate in shaping the future of the protocol.