Jupiter, the most successful Solana trading aggregator, did not achieve the 70% supermajority as expected. Jupiter’s founder, @weremeow, is preparing another proposal with more appealing conditions.
Jupiter DEX concluded its planned vote on running two more Jupuary events. The first vote produced only 58% in favor, with 42% not satisfied with the proposed conditions.
The outcome means the Jupiter DEX chief developer @weremeow will work on another proposal, until achieving a 70% supermajority.
The turnout for the vote was the highest in Jupiter’s history, showing the community’s ability to respond fast and take governance seriously. More than 364M JUP were put into staking to vote, with 12K registered users leaving comments and suggestions.
Jupiter has tested the community with multiple small votes and issues. The Jupuary vote has the potential to distribute 1.5B JUP shares, with a significant market value. In the coming week, Jupiter will address the feedback and come up with a new proposal. The next vote is expected to start from December 2-3.
The community has rallied around the yes vote, though still not convincing all users. The main point of contention is whether a new Jupuary should reward long-term holders, or spread tokens to a wider community. There is a risk new recipients may sell their JUP, instead of participating for the long run.
Jupiter DEX aims to grow its community
The Jupiter protocol has a total of 635,520 unique addresses. However, the app aims to become even more widely adopted, aiming to create more JUP owners. The first Jupuary event was key to popularizing the token, and became one of the most valuable airdrops in 2024.
The coming event aims to reward real usage, though there are worries about airdropping tokens to farming wallets.
“There must be so many innovative options to Grow the Pie other than just airdropping tokens to users based on volume or classic “usage” metrics,” wrote user Juanortuzar.sol.
Others suggested that the airdrop would lead to farmers quickly liquidating their JUP, but the project can accept some selling and even gain after a high-profile airdrop. Commenters suggested Jupiter is still a relatively new platform and can recover even after selling pressure on its token.
Jupiter community members also recalled the first Jupuary, when the token was extremely volatile. The votes against the proposal were also not pleased with @weremeow’s intention of airdropping JUP with no vesting period or locked tokens. Some of the proposals suggested a minimal vesting period of 30 days.
JUP was also held closely, with just around 1.5B in circulation. The bulk of tokens are in the community and team wallets, with another 434.4M locked for voting. The Jupuary event, planned for early 2025 and 2026, will be one of the biggest distributions.
The Jupiter DEX community currently receives active staking rewards for voting, as well as 75% of the fees of the LFG token launch platform.
Older holders and stakers have also suggested that JUP may continue to be distributed as active staking rewards (ASR), benefitting older users. Previously, Jupiter’s community voted in favor of distributing leftover Jupuary tokens for another year of active staking rewards.
There are suspicions that the Jupuary vote may also be swayed by whales since it depends on staked JUP. Large-scale holders would benefit from a smaller community and a bigger share of rewards.
Jupiter remains key for Solana swaps
Jupiter is one of the key elements of the Solana ecosystem, acting as a router for optimal meme token swaps. Jupiter also offers its own mini-products and features, while functioning as a DEX.
The Jupiter DEX locks in $2.4B in liquidity on its own trading pairs. The Jupiter aggregator reaches all Solana DEX, though with a predominance on Raydium, Orca, and Meteora. Jupiter carries a few large-scale swaps of over $100K.
The bulk of activity and swaps are in the range of $0-100, and up to $1,000. Some of the low-cost traffic may be part of an airdrop farming effort. Jupiter also handled more than 44M weekly transactions between November 11 and November 25, with a sudden spike in meme token activity.
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