Proposal: JUP Sacrifice Ritual - Community-Driven Token Burn Initiative
Background
Jupiter ($JUP) is a premier decentralized exchange (DEX) aggregator on Solana, celebrated for its high trading volumes and dedicated community. As of April 5, 2025, $JUP has a circulating supply of approximately 2.86 billion tokens, a total supply of 7 billion, a market price of $0.39, and a market capitalization of $1,115,297,541. With a fully diluted valuation (FDV) of $2,730,000,000, $JUP faces challenges in optimizing token value and expanding its appeal to institutional investors in a volatile market. Reducing supply through a burn mechanism can enhance scarcity, lower FDV, and bolster community confidence, particularly during the post-Bitcoin halving bull cycle of 2024.
The “JUP Sacrifice Ritual” is a community-driven initiative to voluntarily burn $JUP tokens, blending gamification, exclusive incentives, and broad participation to deliver economic and social benefits to the Jupiter ecosystem.
Objectives
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Reduce Total Supply: Target burning 100-300 million $JUP within the first six months to increase token scarcity.
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Lower FDV: Reduce the fully diluted valuation from $2.73 billion
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Enhance Community Engagement: Foster loyalty and ownership through an inclusive and rewarding burn mechanism accessible to all holder sizes.
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Drive Organic Momentum: Create a compelling narrative to attract new investors and reinforce Jupiter’s position in the Solana ecosystem.
Mechanism
The “JUP Sacrifice Ritual” is a monthly event lasting 7 days, during which holders send $JUP to an official burn address (e.g., 0xJUPBurn…dead). The Jupiter team will match community burns with treasury contributions to maximize impact.
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Schedule: Held monthly for the first six months (April-September 2025), with potential adjustment to quarterly thereafter based on evaluation.
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Minimum Participation: 100 $JUP per holder (no upper limit), ensuring accessibility for smaller holders.
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Team Contribution: 1:1 matching burn from treasury, capped at 50 million $JUP per event.
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Verification: Holders submit transaction hashes via the Jupiter website or Discord bot to claim rewards.
Reward System
Rewards are structured to incentivize participation across all holder levels while preserving ecosystem balance:
- Exclusive NFTs:
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JUP Flame NFT: Burn 100 $JUP - Common tier, collectible with a simple flame design.
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JUP Inferno NFT: Burn 1,000 $JUP - Rare tier, animated blazing flame, grants access to private Discord channel.
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JUP God NFT: Burn 10,000 $JUP - Legendary tier, featuring Jupiter deity effects, includes website recognition.
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NFTs minted on Solana, tradable on marketplaces.
- Discord Roles:
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JUP Ember: Burn 100 $JUP - Basic role with access to public ritual channels.
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JUP Blaze: Burn 1,000 $JUP - Mid-tier role with access to “JUP Inner Sanctum” private channel.
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JUP Deity: Burn 10,000 $JUP - Elite role with private team voice chats.
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Managed by “JUP Burn Bot” for automation.
- Voting Power Boost:
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Burn 100 $JUP: +10% (1 $JUP = 1.1 votes).
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Burn 1,000 $JUP: +25% (1 $JUP = 1.25 votes).
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Burn 10,000 $JUP: +50% (1 $JUP = 1.5 votes).
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Maximum boost capped at 1.5x, valid for 6 months, sourced from a separate bonus pool (10% of total DAO votes) to prevent governance imbalance.
Expected Impact
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Supply Reduction:
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Minimum Scenario: 2,000 holders Ă— 2,000 $JUP + 8 million from team = 16 million $JUP/event; 6 months = 96 million (1.37% of 7 billion supply).
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Optimistic Scenario: 5,000 holders Ă— 5,000 $JUP + 25 million from team = 50 million/event; 6 months = 300 million (4.29% of 7 billion supply).
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FDV Adjustment:
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Current supply: 7 billion tokens.
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Post-burn (300 million): 6.7 billion tokens.
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At $0.39/token:
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Current FDV = 7 billion Ă— $0.39 = $2.73 billion.
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New FDV = 6.7 billion Ă— $0.39 = $2.613 billion.
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FDV reduction = $2.73 billion - $2.613 billion = $117 million (4.29%).
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Potential price increase to $0.41-$0.43 (assuming stable demand) due to increased scarcity.
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Community:
- Engagement from 2,000-5,000 holders per event, with a lower entry point broadening participation across small and medium holders.
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Market:
- Buzz on X and the Solana community could drive additional trading volume to Jupiter Exchange.
Implementation
- Development:
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Solana smart contract for burn address and NFT distribution.
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“JUP Burn Bot” on Discord for verification and role management.
- Launch:
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Kickoff: April 15-22, 2025, with a live stream on Discord.
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Announced via X, Jupiter website, and #jup-sacrifice-ritual channel.
- Promotion:
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Collaboration with Solana KOLs for amplification.
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Teasers for “JUP God” NFT and real-time leaderboard.
- Monitoring:
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Daily updates: “X $JUP burned, Y remaining to target!”
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Monthly reports in Inner Sanctum and website.
Community Narrative
“Let’s ignite Jupiter’s rocket together—burn $JUP, reduce supply, and become part of a legacy. Every sacrifice, big or small, brings us closer to glory. Join the ritual, enter the Inner Sanctum, and prove you’re a true holder!”
Risks & Mitigation
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Risk: Low participation.
- Mitigation: Lowered entry to 100 $JUP, attractive incentives (NFTs, roles, voting), and aggressive promotion.
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Risk: Voting power imbalance.
- Mitigation: 1.5x cap, 6-month validity, separate bonus pool.
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Risk: Whale exploitation.
- Mitigation: 3-month cooldown for repeat burns, encouraging small/medium holder focus.
Conclusion
The “JUP Sacrifice Ritual” is an innovative approach to empower the Jupiter community while enhancing token fundamentals. By reducing supply and FDV, we create long-term value for holders—from the smallest to the largest—and craft an inspiring narrative that resonates across Web3. Let’s bring this vision to life together!
Proposed : x.com/kazao_zao