ASR (Active Staking Rewards) Methodology

Jupiter DAO ASR
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We’re publishing our ASR Allocations deep-dive, this post will explain in detail how we calculated the distribution of your ASR rewards.

Recap

To start, let’s recap about ASR:

Active Staking Rewards is to reward Active members of the community who stake and participate in proposals. To prevent sybil on the governance program, this airdrop is done linearly, based on Participated Voting Power, which is calculated by Amount of Staked JUP when voting and Number of Proposals Participated.

  • The more JUP staked while voting → the more rewards
  • The more proposals participated in → the more rewards

ASR Calculations

We calculated ASR based on per proposal rewards. Each proposal (other than the 3 Trial WGs proposals) are allocated the same amount of total rewards, while the Trial WG proposals got ⅓ of those rewards.

2024 Quarter 2

JUP ZEUS SHARK WEN UPT
Total ASR Pool 50,000,000 7,500,000 750,000 7,500,000,000 750,000
Reward Pool per Proposal 7,142,857.14 1,071,428.57 107,142.86 1,071,428,571.43 107,142.86
Reward Pool for Trial WG Proposal 2,380,952.38 357,142.86 35,714.29 357,142,857.14 35,714.29

Per Proposal Reward Rate = Per Proposal Reward Pool Per Proposal Total Voting Power

Per Proposal User Rewards = Per Proposal Reward Rate Per Proposal User Voting Power

Using the per proposal methodology, we can calculate the reward rates and total voting power for each proposal. This allows us to determine your voting activity and contributions for each proposal (rather than using total voting power across all proposals and your voting power to calculate the percentage of reward you receive).

If you had voted in proposals with less total voting power participated, you will get more rewards out of it. This rewards voting activity that took place early on, when the amount of staked JUP and participating votes were lower.

On the other hand, as the 3 Trial WGs took place at the exact same time, and as per promised in this Tweet, the reward for these 3 proposals were reduced to 1/3.

Thus, voting for all 3 was equivalent to voting for 1 proposal. Effectively, the total ASR Pool is divided by 7 to allocate to each proposal while it is further divided by 3 to allocate to each Trial WG proposal.

Next ASR:

With this, we conclude the first ASR period. ASR was initially bootstrapped with 100M JUP from the LFG Launchpad fee, and will last over 2 quarters. Renewing ASR beyond these 2 quarters would be the crucial ASR vote coming up in early August. This would fund ASR for a longer period, after the 100M JUP has been distributed.

We’re also considering introducing a minimum of 50 JUP to receive ASR rewards.

This would remove a lot of addresses who receive dust amounts of JUP or other tokens, which might be unprofitable to claim and also add a lot of strain to the network. This would also ensure that more JUP goes to the hands of active and dedicated cadets.

We’ll be announcing more details on this before the next governance vote.

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Think the idea of introducing minimum amount of Jup required to earn ASR is really good. Brilliant and clear methodology which reinforces the goal; PUT JUP IN THE HANDS OF THOSE WHO LOVE IT🙌🏿

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Agree on a minimum staking amount. 50 JUP is probably fair, as the token will become more valuable over time and it will get hard in the coming years for lower income people to afford it.

It may not incentivize informed voting but will get people to participate.

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Love the breakdown and the methodology employed to get the first reward going, particularly the jup allocation that was distributed as staked jup, It’ll make a lot of sense to use this token instead (staked jup), moving on from here, since the goal is getting more folks into the dao activities. If you can’t wait for some period of time to claim your rewards, then you don’t deserve it, it’s that simple :grin:

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The distribution methodology shows that a lot of thinking went behind this. The less people vote, the more reward those who vote will earn. Now no one would want to miss out on any votes lol.

I do agree with increasing the minimum Jup amount required for claim to 50 JUP. why spend money to claim dust? not doing this would leave claimers with a loss than a gain.

I’m really looking forward to the next governance vote. J4J!

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I think ya’ll handled this first ASR beautifully! The only potential room for improvement that I can think of is to maybe incorporate some sort of vesting (Streamflow) for the other tokens included in the reward program. Additionally, I also like the idea of a minimum amount of staked JUP in order to participate in ASR.

Overall, great job guys! J4J!

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50 as a minimum is a great idea

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Thank you JUP team for the rewards. This is the most engaging and rewarding staking program I have ever been apart of.

*Suggestion: Someone in the discord brought up the idea to have a little poll pop up when someone unstakes. Would be great to know why if people choose to unstake.

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Agree on this. All these project tokens are likely to see a price drop on claim. And whilst it’s not surprising it does sort take away from the launchpad a bit. Least with a vesting airdrop you can spread that impact out and see less obvious price effects.
I dunno if adding another bunch of steps (e.g., going to Streamflow each day to claim) is a good idea. Maybe a direct to wallet vesting claim would be better. But that’s just details to sort out.

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I’m a little leery about setting a minimum amount for ASR allocation. How many of those wallets participated in governance? I can imagine a scenario where creating a barrier to governance could hurt the ecosystem as a whole.
maybe consider converting non JUP rewards to JUP, autostaked for any wallet under 50 JUP? Or potentially even subsidising validated low balance accounts.
The issues regarding top heavy DAO structures have been documented.
One report talks about 90% of the voting power being held in 1% of the wallets:

I feel as though there might be some value in growing our base from the ground up. It’s been demonstrated here that financial stake is not the only value we see…yet our primary recognition mechanism is our ASR allocations.

Just something to think about i suppose

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i am content, thanks team

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ASR is Revolutionary and Commitment is the key to contribute for a great progress of this…

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Agreed, maybe not the “cleanest” way to go about it but from my experience with Streamflow, it’s a great option to use. On the other hand, Wormhole used Backpack Wallet’s xNFT feature to airdrop $W to MadLads, making 100% of the claim occur in-wallet. Could also be an option, but as you said, these are just minor details haha.

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All I want to say is thank you Jupiter team. Onwards!

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Love how functional the claiming process was!

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Claiming my tokens was super simple! Thanks again team!

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I thought this distribution was very fair, thank you team $JUP :heart: :cat2:

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Good day, just started in JUP. Going all in with J4J! Thanks for the ASR!

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