Proposal: Align Jupiter Token Burn with January Airdrop
Overview: Recently, the community voted to burn 30% of the 10 billion of Jupiter tokens, with a plan to burn every month for six months consecutively . But the burning process has not yet begun. Concurrently, we anticipate a potential 700 million JUP token release in January 2024, assuming the community approves the JUPUARY airdrop program’s continuance in the governance voting next quarter (starting in October).
I suggest delaying the burn schedule to start in January, coinciding with the airdrop release(if it been voted for in the next governance regarding continuation of JUPUARY), in order to lessen the effects of an increase in token supply from the JUPUARY airdrop. This would guarantee a more equitable distribution of tokens and protect the market from the abrupt spike in supply.
Important Points
Absorbing Boost in Supply: A simultaneous burn of JUP(let say 500M per month) starting in January will assist lessen the inflationary pressure and maintain a more balanced tokenomics if the airdrop delivers 700M JUP in January.
Market Stability: Starting the burn concurrently with the airdrop will have the overall impact of reducing market volatility and averting sharp declines in the token price.
Community Confidence: By coordinating these two initiatives, it will show that we are proactive in preserving token value and fostering confidence among token holders and potential investors.
Burn Schedule Adjustment:
The first burn of 500M JUP(assumption) should take place in January during the airdrop, rather than commencing the burn process right away. To ensure that the complete 30% decrease in overall supply is still reached, the remaining burning will proceed according to the initial monthly plan.
Well thought through proposal but I don’t envision a significant different on the impact if the burn proposal is maintained as agreed in the 30% reduction proposal schedule with respect to the key points you highlighted.
That is actually a good idea and may be why the burn has not started yet. Simultaneously burning while airdropping doesn’t seem like the worst idea in the world. I think you laid out great points and reasoning. Given the fact that Meow has stated the burn would not happen all at once, there really wouldn’t be much of a delay. It’s almost October the airdrop happens in January that is 3 months ish. I don’t think it will have much price impact but the psychological thoughts of a burn around the airdrop could help soften any price impact. The only thing I can consider, and this is just me thinking way outside the box so bear with me haha. If the burn occurs and causes an increase in price (typically they do short term) giving out the airdrop with rising prices could have an effect as it may entice more people to dump the token. Again, that’s just brainstorming. I don’t know of any particular instances of a burn along with an airdrop to compare it to.
Maybe i don’t understand the mechanism right but how i see this is that there should not be any impact on the stated above, since they will burn the supply that was never circulated (issued). It is like updating the total supply figure on the back-end. Even if they have to release those tokens and then burn them its the same thing as it happens at the same time.
proposal kinda makes a lot of sense, aligning the token burn with the jan distro seems like a smart move to counterbalance the increase in token supply and help stabilize the market + delaying the burn schedule and timing it with the airdrop could mitigate inflationary pressure, keep volatility in check, and foster confidence within the community
caveats to consider though:
delaying the burn could raise concerns within the community about commitment to the original plan, some might interpret this as indecision or a lack of follow-through, which could shake confidence in the short term
and there’s the risk that even with the burn, the sudden release of 700 million tokens could still introduce significant volatility if the market isn’t adequately prepared, the burn might help, but it may not completely counterbalance the airdrop’s impact, especially if the demand for the token doesn’t grow at the same rate
The airdrop will likely be vested such that it will be auto staked the moment you claim.
But if the burn start when the airdrop likely occurred then it will reduce the supply such that 200M of JUP token is released while 500M is burnt
Delaying the burn still don’t mean that the burn will not occur, just want it to start when the airdrop likely occurs
It will still be burnt nevertheless
