Long-Term Staking & Real Yield – A Step in the Right Direction
Firstly, thank you for introducing a proposal that focuses on rewarding long-term stakers and building real yield for JUP holders. This is absolutely a move in the right direction. Encouraging longer holding periods and providing tangible returns can help align incentives between the protocol and its community. It shows that we’re starting to prioritize sustainable tokenomics over short-term hype. I fully support the spirit of this proposal – it’s a positive signal that Jupiter DAO is looking beyond pure speculation and trying to give $JUP holders meaningful value for their commitment.
However, while I appreciate the direction, I believe we need to address some deeper issues to ensure this initiative truly succeeds. The concept is great, but the devil is in the details (and the broader context). Below I outline several critical perspectives and suggestions that build on the proposal’s goals, with the aim of strengthening JUP’s long-term value and genuinely empowering the community.
It’s Not an “Emissions” Problem – It’s the Supply Overhang
One key point: the core issue with $JUP’s token economics is not ongoing inflation from new token emissions. In fact, no new tokens are being minted out of thin air. The total supply was fixed at 10 billion, and after the recent burn it’s down to 7 billion. The problem is that those remaining 7 billion JUP are already allocated (to the team, investors, community incentives) and are gradually being released. In other words, a huge portion of supply is still destined to hit the market over time, and everyone knows it. This creates a persistent overhang and constant sell pressure – even if emissions per se have “stopped,” the circulating supply will continue to expand as locked tokens unlock.
The 3 billion token burn was a welcome move (reducing the maximum supply from 10B to 7B), but it didn’t change the underlying dynamic: a large supply of JUP is still scheduled to flood into circulation in the coming years. Investors and traders aren’t blind to this. They price it in, leading to weaker confidence in the token’s long-term scarcity. Every time an unlock or distribution happens, people expect a dump. This expectation of future sell-offs is depressing the price today. So while rewarding long-term stakers is a good idea (to encourage holding), we must recognize it’s fighting an uphill battle against this known supply glut.
In short, JUP’s challenge isn’t unchecked minting, it’s managing the release of the pre-minted supply. Any effective long-term incentive plan should consider how to mitigate the impact of those inevitable unlocks. Otherwise, even loyal stakers may find their efforts offset by continuous sell pressure from the steady stream of tokens entering the market.
JUP Lacks Fundamental Utility (So Far)
Let’s be frank: right now JUP is mostly a speculative asset with limited fundamental value to regular users. Aside from governance voting rights, there isn’t a strong reason for the average user to hold and use JUP in the Jupiter ecosystem. Yes, staking JUP gives you a say in DAO proposals and some Active Staking Rewards (which themselves are just more JUP tokens), but beyond that, what can you do with JUP? Not much at the moment. This means most holders are holding because they hope the price will go up, not because they need JUP for anything.
That’s a risky situation. If a token’s value is driven only by speculation and hype, it’s fragile – especially in a bear market or when those large unlocks occur. Unless we add real utility to JUP, there’s no compelling reason to buy or hold it long-term. Governance alone isn’t enough; many investors won’t lock up funds just for voting rights on proposals that the core team mostly initiates. And receiving more JUP as a reward for staking (essentially diluting someone else’s share to pay you) is not “real yield” – it’s more like a musical chairs redistribution of the existing pie.
The proposal’s focus on “real yield” gives me hope that we’re recognizing this issue. Real yield implies rewards backed by actual revenue or value creation, not just inflation. That’s exactly what JUP needs. But beyond yield, we need to make JUP useful. The token should ideally become an integral element of Jupiter’s platform, not an afterthought. Only by embedding JUP into the ecosystem’s core activities will demand for the token organically grow, supporting its value even as more supply unlocks.
Ideas to Give JUP Real Utility and Value
If we want JUP to be more than just a governance token, we should take inspiration from successful exchange and DeFi tokens (think BNB, UNI, etc.) that have become essential in their ecosystems. Here are a few ideas for how JUP’s utility and real yield could be enhanced:
- Trading Fee Discounts for Holders/Stakers: Encourage traders to hold and stake JUP by offering reduced fees on Jupiter’s platform (especially for high-frequency activities like perpetual trading or swaps). For example, someone staking a certain amount of JUP could get, say, 20% off fees. This creates an immediate, tangible benefit to owning JUP if you use Jupiter’s services. It worked wonders for BNB on Binance – JUP can emulate that for Jupiter.
- Staking Tiers Unlocking Platform Benefits: Create tiered rewards or features based on how much JUP a user stakes. Higher tiers might unlock better borrowing rates, higher lending APYs, early access to new products, or increased referral rewards. This gamifies long-term holding – users will want to accumulate and stake more JUP to get the better perks. It also ties the token’s value to the actual usage of the Jupiter protocol.
- Protocol Fees for Buybacks & Burns: The protocol currently generates fees from trading and other services. Allocate a portion of those fees (e.g. x%) to regularly buy JUP off the open market and immediately burn it. This directly returns value to token holders by reducing supply and countering some of that sell pressure. Importantly, these buybacks should be automatic and transparent – not just promises. If Jupiter’s usage grows, the buybacks grow, creating a positive feedback loop for JUP’s price. (Note: The key is instant burns; simply accumulating buyback tokens in a wallet or redistributing them slowly doesn’t have the same confidence-boosting effect as true burns – litter.box method)
- Sharing Revenue with Stakers (Real Yield in USDC): Perhaps the most powerful incentive – share a portion of protocol revenues with JUP stakers in a stable asset like USDC. This would mean if you stake JUP, you earn a steady yield denominated in real value, not more JUP. For instance, if Jupiter generates sizable trading fees, a percentage could be periodically distributed to stakers as USDC dividends or buy JUP which is then given to stakers (effectively the same as a dividend). This aligns stakers with the platform’s success: the more revenue Jupiter makes, the higher the payout for those staking and supporting the network. It turns JUP into a kind of cash-flow asset, not just a speculative token.
Implementing even a couple of the above would significantly strengthen JUP’s value proposition. These ideas would transform JUP from a purely speculative token into a token with real demand and yield. They’re not far-fetched – many other crypto platforms have similar mechanisms. The goal is to make participating in the Jupiter ecosystem (trading, lending, etc.) synergistic with holding JUP, so that the token’s fate is directly tied to the platform’s success. If JUP becomes necessary or at least highly beneficial to use Jupiter’s products, people will want to buy and hold it, even as new supply releases, because there’s a fundamental reason to own it.
Empower the DAO – Real Alignment, Not Just a Rubber Stamp
Finally, and perhaps most importantly, the drive to improve JUP’s tokenomics and utility needs to come from the community itself (the DAO), not just top-down from the core team. I say this because up to now, many of the major decisions regarding JUP (token burns, airdrops, reward allocations, etc.) have seemed to be conceived by the team and then passed through the DAO for approval. While it’s good that the team is taking initiative, the DAO often ends up feeling like a feedback group or a rubber stamp rather than an empowered governing body.
If we want long-term stakers to truly feel rewarded and invested, we should also give them a real voice in shaping JUP’s future. Stakers right now technically have voting power, but in practice they have little influence over the strategic direction or how value is distributed – those calls are mostly made by the team. That dynamic needs to change for true decentralization and alignment.
How can we do this? For one, the best ideas for JUP’s utility and rewards should be actively solicited from the community, and the community should have the tools and information needed to propose formal changes. For example, if a community member or a group has a solid plan for implementing fee-sharing with stakers, they should be able to bring that proposal forward and not have it dismissed outright. The team should welcome these grassroots proposals, help refine them, and then let the DAO genuinely decide. When the community sees their ideas being taken seriously and enacted, confidence in the token and the project soars.
Right now there’s a perception that the team isn’t truly interested in sharing power or aligning financially with token holders. Everything of value (rewards, fees, new features) is decided and distributed from the top. That breeds frustration and apathy among long-term holders. To turn this around, the DAO needs to be treated as a partner in innovation, not just an echo chamber. Give stakers and community members a seat at the table in designing JUP’s economics – after all, it’s their investment on the line. Perhaps form community working groups to explore token utility ideas, or hold open discussions where the team commits to act on well-supported DAO proposals.
In short, rewarding long-term stakers isn’t just about throwing them extra tokens or yield; it’s also about giving them real governance power and a sense of ownership in the network’s evolution. If the community is empowered to drive changes that benefit everyone, you’ll see a much stronger commitment to JUP (and far less inclination to dump tokens at the first opportunity).
Conclusion: Constructive Criticism for a Stronger JUP
I’m glad to see the “Reward Long-Term Stakers & Build Real Yield” proposal – it shows we’re starting to address the right questions. The concepts of incentivizing loyalty and creating real value flows are exactly what JUP needs at this stage. My critique above is meant to be constructive: to ensure that as we refine this proposal (and future ones), we tackle the root issues holding JUP back.
To summarize my points:
- Address the supply overhang: Find ways to counter the inevitable release of tokens with equally strong reasons to hold JUP (through burns, increased demand, etc.).
- Add true utility: Make JUP indispensable within Jupiter’s ecosystem – not just a governance token but a key to unlock benefits and savings on the platform.
- Provide real yield: Whenever possible, reward stakers with value that isn’t just more tokens – whether that’s a share of fees in USDC or other mechanisms, real yield will set JUP apart from mere inflationary reward tokens.
- Empower the community: Let the DAO lead and innovate on these initiatives. Encourage and implement community-driven ideas to align everyone’s interests, rather than everything coming from the core team.
By incorporating these considerations, we can make this good proposal truly great. It’s not just about boosting the token price – it’s about building trust and long-term value for Jupiter as a whole. If JUP holders see that their stake gives them not only a voice but also economic benefits tied to the platform’s growth, they will be far more likely to stick around for the long haul (and even increase their positions).
Let’s continue this productive discussion and refine our strategy. I believe Jupiter has the ingredients to succeed: a strong product, a passionate community, and now the willingness to improve its tokenomics. With genuine collaboration between the team and DAO, $JUP can evolve from a speculative token into a cornerstone of the ecosystem – one that rewards believers and builders over speculators.
Thanks for considering these perspectives, and I’m eager to see us turn these ideas into action for the benefit of all long-term JUP holders.
I hope for the better - ihateoranges
DAO Proposal: Reward Long-Term Stakers & Build Real Yield 
Long-Term Commitment = More Voting Power
Duration Without Unstaking
Staking Rewards With Social Impact
Staking Period
Base ASR
Bonus
Real USD Rewards (Without Selling $JUP)
Funded by:
Benefits to the DAO
Higher staking retention = greater security
Community empowerment & alignment
Let’s Build It Together
Appreciate the support, really excited to explore this with the community and Team. Curious to hear what 
!
This keeps things fair, prevents governance centralization, and still rewards long-term commitment.
It’s not an emissions problem – it’s the supply overhang
JUP lacks utility (for now)