Expansion of Jupiter DAO for Use by External DEX Projects

Jupiter DAO
1

Summary

This proposal aims to expand the functionality of Jupiter DAO to be usable by other decentralized exchange (DEX) projects within the Solana ecosystem and beyond. By making Jupiter’s governance system available to other DEX protocols, we can create a collaborative and interconnected DeFi ecosystem, increase the utility of JUP tokens, and promote decentralized governance across multiple platforms.

Problem Statement

Currently, many DeFi protocols struggle to establish robust and decentralized governance models. Building and maintaining a DAO from scratch can be resource-intensive for smaller or emerging DEX projects. Jupiter DAO’s success in decentralized governance presents an opportunity to extend these benefits to other DEXes, creating a unified governance framework and expanding the utility of the JUP token.

Proposed Solution

We propose upgrading Jupiter DAO’s smart contracts and governance system to allow other DEX projects to integrate and use the DAO for their own governance purposes. This will involve:

  1. Smart Contract Enhancements: Modifying the existing DAO contracts to support multi-project governance, where other DEXes can leverage Jupiter’s governance infrastructure.
  2. API and Integration Support: Developing an API or integration toolkit that other projects can use to connect to Jupiter’s DAO system seamlessly.
  3. Multi-Dex Governance Model: Introducing a system where governance proposals can be categorized by DEX projects, allowing participants to vote on initiatives relevant to their preferred protocols while maintaining the integrity of Jupiter’s overall governance structure.

Benefits

  • Increased Utility for JUP Tokens: As more DEXes adopt Jupiter’s governance framework, the demand for JUP tokens will rise, leading to greater liquidity and utility for the token.
  • Wider Adoption of Jupiter DAO: By offering DAO-as-a-service to other projects, Jupiter DAO will become a key player in governance for the broader Solana ecosystem.
  • Strengthened DeFi Ecosystem: This upgrade will promote collaboration between DEX projects, enhance liquidity sharing, and strengthen the interconnectedness of DeFi protocols on Solana.
8 Likes
2

I think this is a good idea, but it seems too generous. I haven’t seen any indication that these other projects will contribute resources or pay for the exposure they’re receiving from an already established DAO with tens to hundreds of thousands of active users. What are they offering to the Jupiter ecosystem in return for this level of exposure and resources?

4 Likes
3

It’s a nice proposal but for dao to accept the offer, the benefit offering to Jupiter Dao should thoroughly be discuss because some project will only be using the Dao for engagement. Jupiter have built trust among the jupiverse it will not make sense to jeopardize trust.

5 Likes
4

They must pay a fee to use the service. or for smaller projects, they may be required to stake JUP for an extended period. Additionally, this will help us gain visibility among users of other projects over time, ultimately increasing the demand for JUP.
Please note that the primary goal of this plan is to enhance the efficiency of JUP.

2 Likes
5

Properly setting up this system requires the creation of appropriate rules. However, if we can establish such a system, the term ‘JUP’ could gradually replace ‘DAO.’ At that point, the JUP token would gain immense value.

2 Likes
6

Looks interesting enough.
Something seems off about it though, can’t place my finger on it currently.

2 Likes
7

I’d love to hear more about what you’re thinking. Even if you can’t put your finger on it yet, any detail might help me see things from a different perspective.

1 Like