Omnichain liquidity infrastructure provider Orderly Network introduced a new revenue-backed token buyback mechanism for its native asset, ORDER, following approval from its community.
Under the updated system, up to 60% of the network’s net fees will be allocated every two weeks to repurchase ORDER through a time-weighted average price (TWAP) strategy, establishing a consistent and transparent link between protocol revenue and token value.
The buybacks are executed on a recurring basis using the revenue accumulated over the preceding two-week period. Half of the repurchased ORDER is distributed to stakers in the form of esORDER, which vests linearly over three months, while the remaining portion is transferred to a community-governed wallet.
The future use of these funds—whether for token burning, liquidity provision, or community incentives—will be determined through governance votes. This framework is designed to align protocol growth with token performance and ensure that ecosystem success benefits both stakeholders and the broader community.
The migration to an esORDER-based staking framework has been finalized, marking the full phase-out of the previous USDC reward model and the concurrent evolution of the VALOR mechanism.
Following the conclusion of the current epoch, both the legacy and updated VALOR systems will temporarily operate in parallel to ensure a smooth transition. Redeeming VALOR 1.0 for USDC will not impact a participant’s position in VALOR 2.0, which will continue to generate esORDER rewards independently of any USDC-related claims.
In order to maintain fairness for existing participants, each holder’s allocation from VALOR 1.0 has been mirrored on a one-to-one basis within the new framework, preserving proportional ownership. The remaining USDC treasury from the prior system remains available for eligible stakers who have yet to claim their rewards.
Overall, the new structure streamlines staking, strengthens alignment with protocol growth, and enhances the direct connection between network performance and participant rewards.
This upgrade introduces a new mechanism for value circulation across the ecosystem, creating a direct link between protocol activity and token performance. Continuous buybacks drive ongoing demand for ORDER, while staking rewards are now tied to the network’s actual revenue generation.
At the same time, governance over an expanding ORDER treasury transitions to the community, enabling decentralized decision-making regarding its future use.
Together, these elements establish a self-reinforcing economic structure in which trading activity and fee generation contribute directly to ecosystem stability and growth. The launch of the first buyback cycle marks a key milestone in Orderly’s shift toward a sustainable, community-governed framework.
Moving forward, token holders will determine how the community treasury is utilized, ensuring that value distribution remains transparent, participatory, and aligned with long-term network development.
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