On Friday, September 27th, voting for @Jupiter đȘ will begin, where it will basically be decided what to do with the #tokens JUP unclaimed from the last airdrop. This vote will be very important, since, from it, plans for the future of Jupiter's #DAO will begin to form. What is good and bad about each option in the new voting? Let's explore.
To put into context the reason for this new vote, we have to go back to the last Jupiter airdrop that happened in early 2024, where the protocol released its #token JUP to #mercado for the first time. These tokens were distributed, according to some eligibility criteria, to various wallets that interacted with the protocol in the past.
That said, the claim for this airdrop ended in July, where it is estimated that a total of 215 million JUP tokens were not claimed by anyone, so these tokens were sent to a community wallet.
Jupiter co-founder Weremeow launched a proposal for the Jupiter DAO to decide what to do with these unclaimed tokens. This is how a debate began within the community about the available options.
Thus, 3 options emerged:
Using tokens to extend Active Staking Rewards (ASR) for another year
Burning the 215 Million JUP Tokens
Return JUP tokens to the community multisig wallet
What happens if I choose the Extend ASR option?
Option 1 tells us to use those 215 million JUP tokens to extend Active Staking Rewards (ASR).
The good thing about this choice is that with only 200 million JUP tokens, you can extend the JUP token rewards for exactly 1 year.
As you know, Active Staking Rewards are given as rewards to those users who stake JUP tokens and actively participate in Jupiter voting. These rewards are more JUP tokens and are delivered at the end of each quarter. So far there have been 2 seasons with a pool of 50M JUP tokens each. This last season ends at the end of September.
Doing math:
50 M x 4 quarters (1 year) = 200 Million JUP tokens
This would leave 15M JUP tokens surplus.
This would be understood as a redistribution of unclaimed JUP tokens to the most active members of the community.
The downside to this option is that when the ASR rewards year ends, what will happen next? Will the community continue to participate actively with or without rewards? I think that in the future different mechanisms may be presented to keep the community active, perhaps not with ASRs, but other options can be evaluated.
What happens if I choose the burn option?
Option 2 tells us that those 215 Million JUP tokens are burned.
The good thing is that this action would reduce the total supply of JUP tokens by 2.15%. In addition, this burn would be added to the pending burn that the dao chose in the past votes.
This would benefit JUP token holders by reducing the gap between circulating market capitalization (CM) and fully diluted valuation (FDV). This could mean a bullish scenario for the price of JUP.
The bad thing is that, like the previous burning proposal, I don't think they would do it right away, it would take some time to decide when to do it. Also, we still don't know what impact it could have on the price of JUP and how it could be maintained over time.
What happens if I choose the option to Return JUP tokens to the community wallet?
Option 3 tells us that the 215M JUP tokens are returned to the community multisig wallet.
The good thing is that this action will simply store those tokens in a secure wallet.
The bad thing is that we don't know what they would use it for in the future, it's uncertain.
In my opinion, I think that option 1 of extending the ASR for one more year is a choice more aligned with what the Jupiter DAO is currently working on. While it is true that the votes for new project launches are over, however, the involvement and participation of the Jupiter DAO in other decisions can make a difference. In addition, the most active members (who show interest) can increase their voting power through these rewards. As always, I recommend doing your own research.
J4J
