JUP getting diluted due to Jupuary - What Jupiter team need to do?

Jupiter DAO $JUP
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As we have seen in the threads, many JUP holders are worried about JUP getting diluted as the circulating supply would increase by 50%. JUP stakers are in the worst position and are most affected, as the unstaking period is set for 30 days. Extensive JUP in the circulation leads to more selling pressure and as part of it gets staked, ASR return is affected negatively.

The fear of dilution may lead people to unstake prior Jupuary to protect their capital. There are things the Jupiter team can do to ease these fears.

1. Meow confirms that a remarkable portion of the Jupuary will be allocated to JUP stakers or that one of the main criteria is participation in the DAO by staking and voting. This allocation also has to be linear or at least properly tiered.

2. Confirmation that the team is in contact with the market makers and will provide the necessary liquidity for the increased circulation supply.

3. Making sure there are good incentives for new JUP holders to participate in the governance by staking and voting.

Another thing I’m recommending is to choose a well-known PR agency with good merits to help build a good story and marketing strategy around Jupuary 2025. Allocate team resources into finding effective ways to make sure that sybils are not rewarded and finally communicate all this with the existing community to ease the fears.

I understand that the goal is to expand Jupiter community. You can do it without sacrificing some of the existing community.

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Very sensible proposal that can resonate with a lot of Juppers and behond👍🏿

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When I think of Jupuary I think of putting JUP in the hands of people that just started using the platform. I urge people to look at this tweet: x.com

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I am glad to see some solutions being shared by the community, including this one, which feels like one of the best ones I have read so far.

PPP is possible when the scenario for PPP is created by making Jupuary beneficial to all parties, especially the investors who have supported the project, the token, as well as their valuable time and feedback towards the improvement of the ecosystem.

Considering OP’s feedback here would indicate the team’s move towards a natural PPP rather than a forced one. Forced PPP is worse than PvP as the latter at least would have willing participants. OPs point #1 also hints towards better transparency for the voters as opposed to Uncertainties leading to Fear/Doubt; one of the oldest recipes for FUD.

By not following P.P.P and C.A.T, we would be leaving a bad example for the future generations. I really hope the team takes this seriously, especially after watching the rally last week where our concerns were dismissed essentially. (Video here x.com)

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I am totally aware of this concern and If the vote passes you can mitigate the impact and prevent most of the following with:

  1. Send it directly to staking (so its locked for 30 days)
  2. Have a vested claim (you can claim small portion each day over a large time frame - months to years)

We all know that eventually 5.65 Billion of supply is still to be put into circulation, so its obvious to expect side effects of the unlocks. Even so i always have this question/thought: do we even need so much supply. :bulb:

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Your Fear is not uncommon, But then Jupiter is UNCOMMON.
The amount of JUP staked IS INCREASING EXPONENTIALLY!
Being Fearful of your rewards diluting is about as based as ETHEREUM Deflationary Thesis, Let me give you an example. Solana is still in an inflationary Role- And ETH has ben deflationary for years now…

Ok so lets look at the Sol-Eth Chart and we should clearly see that Deflationary ETH is way outperforming Inflationary SOL.

Take a LOOK. and you will notice that even with deflationary ETHEREUM the ETH foundation still cannot maintain a stable Price, While the inflationary SOL is beating ETH in every metric .

Dont Fear helping others Get JUPUARY in more Hands, I mean is this not the meaning of J4J? or PPP? If you have a sure fire Token thats going to 1000x, the worst thing you can do is be greedy and not tell anyone, Because common sense tells us that the more people we tell and get JUP into the hands of the more people will buy and stake and the Price will increase.

Remember the only thing We have to Fear is Fear itself.

Jup is a whole new Monster and its Price action has beaten just about every other coin out there and they AIRDROPPED 1 BILLION COINS!

The More jup we Give out, The more we get back!!!

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This is a an amazing observation. As a lucky recipient of the 200 Jup, it sparked my interest in what Jupiter was building and hence informed my decision to stake and vote. I feel the community should be rewarded especially those that have been here helping make the community what it is now (strongest cult on solana IMO). This will further encourage more people to not just visit but build because J.U.P is home.

What do you suggest though for those new to the system? I ask because the community needs newbies who have ideas that could help with the progressive growth @meow keeps talking about.

In all I appreciate you for this insightful article.

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I think Jup in its own essence is doing an AMAZING Job at Onboarding especially with the release of an APPLE APP.

Now to Personally gain new users The word of mouth and Statistics that prove Jup is so beneficial are IMO the Best way to gain new Adoption. I don’t know how excited other usually get but I’m sure I go way overboard when explaining the new "monetary and Self Custody Meta to people. If they take a moment to Listen, I tend to spend my whole day Downloading and explaining the best protocols and ways and Means of Use (Sol,Jup ect.)

I try to avoid the “farming Airdrop themes because I feel I simply would attract the wrong fellows.”. But starting by saying Anyone who just tried the BEST & FASTEST swap aggregator in the world pretty much got rewarded with no less than $200 to try around the time of the first Jupuary Is most likely a huge believer now.

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Yeah thanks. Keep going an amazing job. I hope he android version comes out soon to further inboard more people.

I absolutely agree with when you said

“I try to avoid the “farming Airdrop themes because I feel I simply would attract the wrong fellows.”.”

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Yes I am excited for the androis app as well! …So true but now that I actually think of it - Jup does such an amazing Job all around that even “farmers will be Praised and converted into JupiNerds”…

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Interesting! I like this proposal and think this would help JUP holders.

That having said, JUP is fairly liquid with hundreds of Millions of USD in 24h trading volume. I believe a broad growth-focussed Jupuary could attract a lot of (social) media attention, further driving buy-side demand and liquidity for JUP.

ASR provides amazing incentives already and has been funded with an additional 215,461,850 JUP.

Considering that there is currently 443,979,469 JUP Staked, the additional 215M ASR rewards is an allocation of 215,461,850 / 443,979,469 = 0.485 JUP per 1 JUP staked.

That’s an Additional Active Staking Reward of:

  • 0.485 JUP per 1 JUP staked
  • 4.85 JUP per 10 JUP staked
  • 48.5 JUP per 100 JUP staked
  • 485 JUP per 1,000 JUP staked
  • 4,850 JUP per 10,000 JUP staked
  • 48,500 JUP per 100,000 JUP staked
  • 485,000 JUP per 1,000,000 JUP staked

I’m not a supporter of the first point to an extreme, as it’s important that JUP is properly distributed fairly among all Jupiter users and stakeholders.

That having said, I do support a proper airdrop allocation for JUP stakers.

In my proposal the allocation to JUP stakers is 70 Million JUP. For every JUP staker there would be a 15,9% bonus (0.159 JUP per 1 JUP staked).

That’s an additional DAO allocation for JUP Stakers of:

  • 0.159 JUP per 1 JUP staked
  • 1.59 JUP per 10 JUP staked
  • 15.9 JUP per 100 JUP staked
  • 159 JUP per 1,000 JUP staked
  • 1,590 JUP per 10,000 JUP staked
  • 15,900 JUP per 100,000 JUP staked
  • 159,000 JUP per 1,000,000 JUP staked

This would reward for example the top JUP staker of 12,098,978 JUP with an astonishing 1,923,737 JUP airdrop worth over $2 Million USD.

My proposal below contains further details of the Jupuary distribution proposal.

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This is actually 200M as the rest was excluded from ASR. Still, it’s a good incentive or more of a necessity if we like to see people locking their assets for 30 days and participate in the voting. Also, as we have to pass the 30% threshold now, it could become an issue if there were no incentives to vote. We are good to go till Q3 2025 with ASR. If jupuary gets distributed over january, there are 2 full quarters to participate for max rewards. Is it enough, maybe. 1st ASR was +20%, then 18,2% and currently we are under 14%. I expect Q4 ASR to total between 12-14%, which is still good but the trend is down.

This depends if we manage to distribute the airdrop in a way that most are happy and if the market conditions remain bullish overall. We are most likely in the last leg up in the market and I’m expecting another 3-6 months of bull momentum until the sentiment changes. I obv can’t see the future. Also, there are different scenarios what may happen and I / we have to do our best to evaluate them and get enough reward for the risk. What you say is one scenario and I agree such can happen. I hope it happens.

Your number is decent. I’m not overly excited but I think that number would get me vote for the jupuary, all things considered.

Now, what is your bias, because we all have one?

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I mean look at recent linear allocation projects like Scroll, horrible performance in comparison to tiered/capped performance like Layerzero and Jupiter itself which performed very well in a tough market.

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The converse issue of a linear reward for Jupiter stakers is that not only are they set to receive the highest benefits, even over users, but their stake in the future votes of Jupiter will be even larger, and the project even less decentralized. At which point why even bother to have votes if both Jupuary and ASR guarantee the top 50 or so holders will ultimately control the decision every time?

Its not merely a financial reward, but totally changing voting dynamics in a way that is less decentralized.

All of this ought to be achieved with tiers, not linearly. Projects that have allocated entirely linearly as of late have performed terribly, look at Scroll as an example.

I do agree on the point about finding ways to avoid rewarding sybils, and that may mean much higher minimum allocation standards than in the prior Jupuary.

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