Jupiter Research: $JUP Minting and Accountability
Jupiter embodies a set of Ethos and Values, with $JUP serving as an incredibly valuable resource used to fuel the growth of Solana DeFi, Jupiter, and bring forth the decentralized meta.
Therefore, maintaining the highest levels of accountability and transparency is crucial to us. This research post will outline everything you need to know about the $JUP token and how it is managed.
$JUP Token Supply
$JUP Mint: JUPyiwrYJFskUPiHa7hkeR8VUtAeFoSYbKedZNsDvCN
Tokens Minted: 10 Billion
Mint Authority Burnt: TXID
Freeze Authority Burnt: TXID
Metadata Authority: Kept and secured by Team Cold Multisig.
Token Distribution Plan
As announced in Jupuary Kickoff, this is the token distribution plan:
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10B JUP tokens will be minted.
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The initial 10B will be split 50/50 into the Team Cold and Community Cold multisigs.
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From the Team Cold multisig, 1B tokens (10% of total supply) will be withdrawn for liquidity provision into Team Hot Multisig.
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250M will be used in the single-sided JUP launch pool using Meteora DLMM.
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The rest of the tokens will be allocated to various liquidity needs over the first 1 year.
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From the community multisig, 1.5B tokens (15% of total supply) will be withdrawn for the first airdrop and near term community needs
In summary, there will be 2.5B of tokens available in the first year, with 7.5B tokens available in cold storage. There will be 1.35B circulating tokens at the beginning.
For the token distribution, there are 4 multisig created:
- Team Cold Multisig: 61aq585V8cR2sZBeawJFt2NPqmN7zDi1sws4KLs5xHXV
- Community Cold Multisig: EXJHiMkj6NRFDfhWBMKccHNwdSpCT7tdvQeRf87yHm6T
- Team Hot Multisig: CbU4oSFCk8SVgW23NLvb5BwctvWcZZHfxRD6HudP8gAo
- Community Hot Multisig: FVhQ3QHvXudWSdGix2sdcG47YmrmUxRhf3KCBmiKfekf
These four token distribution multisig, due to their substantial holdings of $JUP tokens capable of exerting influence over DAO decisions, are restricted from participating in any voting processes.
Both the cold multisigs are primarily used for cold storage of tokens not in circulation. The team hot multisigs will be used for liquidity provision purposes while the community hot multisig will be used for community initiatives such as airdrops and community needs.
Each of these multisigs will be governed by a multisig where a majority of 4 out of 7 needs to be reached in order to execute related decisions around the $JUP supply.
$JUP Multisig Structure
In the past, we have seen the following incidents:
- Improper usage of community-allocated tokens for non-community purposes
- Vesting team tokens ahead of schedule and selling them
- Voting with locked tokens to sway proposals in team’s favor
- Losing access to bridged or wrapped funds due to various reasons
$JUP is a valuable resource for Jupiter, JUP DAO and the wider Solana community, hence it should be managed carefully as such. We explored multiple options and landed on the following multisig structure involving:
- Jupiter Team
- Independent Ecosystem Signers
- Professional Custodians
The role of external signers outside of Jupiter Team are like custodians of the $JUP supply. They make sure that we are accountable and responsible to the public decisions that we had made over the $JUP supply.
The most important group in this list is the Independent Ecosystem Signers. This group is made up 3 respected members of the Solana community: Mert (Helius), Stepan (Squads), Nico (Neodyme).
This ensures that the usage of the 75% of the tokens budgeted for long-term purposes requires ecosystem buy-in, proper communication to the Jupiter and wider Solana community. Once a decision is agreed upon publicly, all signers will verify, vote and execute this decision together.
Apart from the reputable external parties in the Solana Ecosystem we have invited to be part of the multisig, we are looking for 1-2 professional custodians to hold a key where they will take on the role of a backup signer.
The professional custodians will only be activated in these situations:
- When there is sufficient evidence that access to 3 keys are missing or in a deadlock.
- Reported loss of keys and assistance is needed to update keys of current multisig members quickly.
- Emergency unexpected situations that might require rapid reactions to secure funds
These custodians will then be brought in to vote and execute with discretion.
Here is the multisig structure summarized in a table:
Token Distribution Tracking
As mentioned in the Token Distribution Plan section, we have performed the token distribution ceremony and will detail it in this section. We minted the token, seeded the cold multisigs and distributed them to the hot multisigs in preparation for the token launch.
This is the current distribution of tokens in each respective multisigs.
| Multisig | Address | Number of JUP Tokens | Remarks |
|---|---|---|---|
| Team Cold Multisig | 61aq585V8cR2sZBeawJFt2NPqmN7zDi1sws4KLs5xHXV | 4B | Cold storage under Team + External Multisig |
| Community Cold Multisig | EXJHiMkj6NRFDfhWBMKccHNwdSpCT7tdvQeRf87yHm6T | 3.5B | Cold storage under Team + External Multisig |
| Team Hot Multisig | CbU4oSFCk8SVgW23NLvb5BwctvWcZZHfxRD6HudP8gAo | 1B | Liquidity provision needs in the first year |
| Community Hot Multisig | FVhQ3QHvXudWSdGix2sdcG47YmrmUxRhf3KCBmiKfekf | 1.5B | Community needs in the first year |
Team Cold and Hot Multisig seeding
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We prepared a proposal to send 1B JUP tokens from the Team Cold Multisig to the Team Hot Multisig: Proposal
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Jupiter Team and external signers verified the multisig addresses, $JUP amounts to transfer, and successfully voted for execution of 1B tokens to be transferred from Team Cold Multisig to Team Hot Multisig: TXID
This completes the token transfer ceremony on the Team Cold and Hot Multisigs.
Community Cold and Hot Multisig Seeding
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We prepared a proposal to send 1B JUP tokens from the Community Cold Multisig to the Community Hot Multisig: Proposal
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Jupiter Team and external signers verified the multisig addresses, $JUP amounts to transfer, and voted for execution of 1.5B tokens to be transferred from Community Cold Multisig to Community Hot Multisig: TXID
This completes the token transfer ceremony on the Community Cold and Hot Multisig.
We did a final verification to vouch that all 4 multisigs currently hold the exact announced token distribution and with that, we officially completed the $JUP Token mint!
