Orca, a decentralized exchange operating on the Solana blockchain, is reportedly eyeing an acquisition. The protocol’s Decentralized Autonomous Organization (DAO) has put forth a proposal to purchase an undisclosed Solana-based DeFi protocol, aiming to bolster its credit and yield product offerings.
The market reacted swiftly to the news, with the $ORCA token surging 84% as the acquisition plan circulated, according to data from SolanaFloor.
The proposal, titled “Resourcing Orca for Its Next Phase,” was formally submitted on September 29, 2026, following unanimous endorsement from the Governance Council on September 24. The voting period is set to conclude on October 10, 2026, meaning the outlined changes remain a proposal, not a finalized decision.
Key Proposed Changes
A significant alteration proposed is the redistribution of protocol fees. Under the new structure, 10% of fees would be allocated to xORCA staking rewards, and another 10% would be earmarked for buybacks managed by the Orca team. The remaining 80% would be directed towards operational expenses.
The proposal also outlines a substantial shift in the protocol’s treasury management. Approximately 14.2 million ORCA tokens, representing roughly 19.8% of the total supply, would be moved from the community treasury. Alongside these tokens, approximately 70,000 SOL would also be transferred. These assets would be placed into a newly established Strategic Account, which would be team-controlled and exclusively designated for acquisition purposes.
Structurally, the proposal calls for the dissolution of the current Governance Council, the very body that recently approved the plan.
Strategic Acquisition and Market Reaction
The central tenet of the proposal is the strategic acquisition of a leading, yet unnamed, Solana DeFi protocol. Orca’s leadership views this potential deal as a crucial step in expanding its suite of credit and yield products. The acquisition is projected to contribute to an estimated 50% increase in Orca’s Total Value Locked (TVL).
However, the market is being asked to assess the value of an acquisition whose target remains undisclosed, presenting a challenge for investors seeking to evaluate the potential impact.
Community Concerns
Criticism of the proposal has primarily focused on two areas: reduced staking rewards and the concentration of power. xORCA stakers would see their share of fees decrease to 10% under the proposed fee split. Furthermore, moving a significant portion of the treasury to a team-controlled account, coupled with the dissolution of the Governance Council, is seen by some as shifting influence away from token holders and towards the core team.
While the proposal includes measures to prevent excessive token issuance and address concerns about dilution from new minting, it does not directly resolve questions regarding the decision-making process for the allocation of existing assets.
Market Performance and Investor Outlook
Following the proposal’s circulation, $ORCA experienced an 84% surge, according to SolanaFloor. Broader market analysis indicates that the token gained over 80% in the week leading up to October 7, 2026, with recent trading activity ranging between approximately $2.90 and $3.15.
For ORCA holders, the proposal presents a trade-off: a reduced immediate share of fee revenue from staking in exchange for a potential future growth driven by the team’s capital deployment strategy. The team-managed buybacks would operate at the discretion of the team, rather than following a predetermined community-controlled schedule.
The critical date for stakeholders is October 10, 2026, when voting concludes. Following this, attention will shift to the identity of the acquired protocol, the successful integration of new credit and yield products, and whether the projected 50% increase in TVL materializes.
