Jupiter, the decentralized exchange (DEX) aggregator on Solana, is approaching the final hours of a significant community vote regarding the future of over 200 million JUP tokens. With over 299 million votes cast, the turnout has surpassed the minimum requirement of 60,000 votes. The outcome of this vote will decide whether the tokens will be burned or reintegrated into the ecosystem.
Tokens from jupuary campaign up for vote
The tokens are from unclaimed airdrop rewards distributed during the Jupuary campaign in 2024. Of the 215 million tokens at stake, the community is voting on whether to burn or recycle them for active staking rewards. Another option is to return the tokens to the community multisig, potentially increasing the reward share from Jupiter’s platform fees.
The platform has not revealed the current voting trend to prevent manipulation. However, the Jupiter team has recommended using the tokens for another year of active staking rewards (ASR). They argue this would align incentives, encouraging participation in future votes and staking.
Staking vs. burning: community weighs the options
If the tokens are allocated for ASR, they will likely contribute to higher staking activity but could also introduce some selling pressure. In contrast, burning the tokens would reduce supply and stabilize the price. Jupiter DEX has successfully distributed multiple ASR installments over the past year without significant price dips, maintaining a value close to $1 despite market fluctuations.
The upcoming ASR event in October will also redistribute tokens, and if the vote favors the ASR option, it will extend similar events into 2025. This long-term use of tokens may provide continued rewards and active engagement within the ecosystem.
Jupiter’s role in Solana’s trading ecosystem
Jupiter remains a key player in Solana’s decentralized finance (DeFi) landscape, especially for small-scale traders. The platform aggregates liquidity from sources like Raydium, Meteora, and Orca, facilitating millions of low-value trades. In late September, Jupiter saw a surge in trades under $100, driven by Raydium activity and the introduction of dollar-cost averaging and limit orders.
Despite a dip in revenue generated from fees last month, Jupiter continues to attract traffic. The aggregator completes up to $1.5 million in weekly fees, a critical part of its community-driven model. This model, which distributes 50% of the platform’s earnings to JUP holders, is part of why community engagement in votes and staking remains high.
Liquidity locked and long-term outlook
Jupiter has reached a new milestone with over $1.26 billion in total value locked (TVL), surpassing its market capitalization of $1.21 billion. Over 377 million tokens are actively locked in staking, earning 50 million JUP rewards in the last quarter. If the vote supports ASR, the platform will have enough tokens to sustain these rewards for another year.
Though 66% of JUP tokens are unlocked, most belong to the community, with significant unlocks expected by February 2025. The total supply of JUP tokens is set to reach 10 billion, with only 1.3 billion currently in circulation. This means the 200 million tokens being voted on will have a limited impact on overall supply, regardless of the vote’s outcome.
As the voting concludes, JUP’s price remains stable at around $0.90, with open interest rising to $63 million. While some traders are cautious about upcoming token unlocks, many remain optimistic, as evidenced by the predominance of long positions in the market.
The post Jupiter DEX Voting on JUP Token Reserves Nears Final Hours first appeared on Coinfea.
