JUPUARY EXTENSION- Pros and Cons

General
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As we approach the vote on whether to continue Jupuary, the annual event where a significant portion of $JUP tokens are distributed to the community,With nearly 50%(700m expected)of the current token supply set to unlock during this event, Below i have written more detailed analysis of the pros and cons of JUPUARY

PROS

1.Rewarding Active Participation and Contribution

Jupuary is designed to recognize and reward community members who contribute to the growth of the Jupiter platform , This aligns with the genesis vision of $JUP as the governance token as mentioned in the The Genesis post by meow .
By distributing tokens to those who actively engage in governance, use the platform, and support its development, the event incentivizes long-term participation and community driven success.

2.Unavoidable Token Unlock

Regardless of whether Jupuary occurs or not, these tokens will eventually enter circulation, either through other mechanisms,distributing them in a controlled, predictable manner allows the community to anticipate and plan for the release.This provides transparency and a clear schedule for unlocking

3.Supporting the DAO Vision of Defi Expansion

The Jupiter DAO is to drive the decentralized financial space forward, and Jupuary plays a key role in that effort, By expanding the number of users holding $JUP, broadens the base of governance participants . Jupiter has the potential to grow from being just an exchange with $JUP evolving into the native currency of that ecosystem

4.Enhancing Awareness and Visibility

An annual event like Jupuary serves as a chance for Jupiter to reward its real users and generate genuine buzz. It is not about chasing potential airdrops, nor should anyone use Jupiter just for farming rewards , as team is fully focused on building the best and most affordable products in DeFi and stand behind the long-term growth and success of the ecosystem driven by real users

CONS

1.Market Dilution Due to Significant Token Unlocking

One of the main risks of continuing Jupuary is the sheer volume of tokens set to be unlocked, This could dilute the value of $JUP, leading to sharp declines in price and questions on confidence in the token long-term value.

2.Risk of Airdrop Farmers-Short-Term Participants

Jupuary attract a no. of users who participate solely for the airdrop, with no intention of contributing meaningfully to the ecosystem
,while Jupuary aims to reward genuine users, thereā€™s a risk that it could may attract those looking for a quick profit

3.Increased Price Volatility

With a large portion of the $JUP supply entering the market ,Some existing holders ,might decide to sell their tokens quickly, expecting a sudden drop in value due to the unlock,This could cause the price of $JUP to fluctuate ,Long-term users may feel worried about keeping their tokens if they think the price will suddenly drop. This could make them less confident about staying in the ecosystem

4.Temporary Spike in Activity

Jupuary might bring a lot of people to the platform for a short time, but many could leave after getting their tokens. The goal of Jupuary is to reward genuine users who are truly interested in supporting and growing the Jupiter ecosystem. While some may join just for the airdrop and stop using the platform afterward.

Conclusion

Jupuary is a crucial event for the Jupiter ecosystem, designed to reward genuine users and recognize their contributions to the platform,also we must also consider the potential risks with it, need ensure that Jupuary serves as a positive force for Jupiter growth without compromising its future stability
J4J
Thanks You

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JUPUARY šŸ«¶šŸ¼šŸƒ by and for the community

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Good points
I feel it should stop personally.
Perhaps a sort of incentivising can replace jupuary for true ecosystem contributions.

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Almost directly go against your own Thesis, Reward the Long term Aligned Users, Get More Jup into New and existing Users Hands as a Payment method, dilution of JUP due to unlocking Jupuary approx. 700m new circulating tokens into Circa ā€¦

Basically Everyone knows they need to stake JUP to be rewarded while also participating in the DAO voting processā€¦

I feel most of the CONS you have stated would be accurate ā€œIFā€ there was no REWARD and 30-Day delay to Unstakingā€¦ Meaning the MAJORITY OF JUP STAKERS continues to GROW and Holders are staking MORE. Clearly this is not going to change, only become more visible. Which is a Good thing for the Long term Price action of JUP. To keep it simple basically I feel there are enough barriers in use to Prevent the Average person from simply ā€œusingā€ JUP to get a free Airdrop as we Know the most LOYAL users are rewarded Moreā€¦ So basically I feel that if we didnā€™t have these barriers in effect LIKE WE DO, Then Jupuary may be detrimental to JUP price actionā€¦

But we all know that There are very few who will gain anything from ā€œfarmingā€ JUP and If anyone is actually going that far to FARM JUP then there most liekly going far enough to Staker HODL and Vote. This is a Whole new Meeting of the MINDS and MEOW is a Genius in What has been implemented and what Is keeping people holding ONTO JUP.

Only the Uneducated would try to Farm a JUPUARY after knowing the Extents and Benefits of HODLING & Voting JUPā€¦ Keep REWARDING LOYAL USERS WHO VOTE AND STAKE while Giving the benefit of Doubt to the Newcomer who may think its wise to Dump his JUPā€¦

So basically Im looking forward to another JUPUARY although I do feel there should be some mechanisms in effect to prevent Multiple account creators from farming large drops to said Newcomer, Yes newcomers should be rewarded but seeing we are going into the SECOND JUPUARY I feel less should effectively be Freeloaded into the newcomers Quick hands and a larger Portion should go to LONGTERM USERS / Higher Tiered Users and HOLDERS to a larger degree than a free quick Drop for almost any interactions with the JUP protcol or Toolsā€¦

Most would be more Biased If they have any understanding of growing the PIE and J4J and or were higher tiered Users Like Tier 5 Like me for exampleā€¦

I want everyone who believes in the JUP ethos to be rewarded Even first time users, I just feel there should not be such a large ā€œBonusā€ to effectively any user/Farmer the larger Bonuses and drops should goto Long Term holders and Higher Tiered Members. I feel the First Jup got slightly out of hand as there was basically a $250 Minimum Drop for any wallet interaction of JUPā€¦ Lets not make that same mistake again but rotate them rewards toward More Loyal and Longer termed Holders.

Sorry for the Lengthy Explanation But even with it Getting out of hand the first time around we have learned a lot from that and in all actualities It went much more smoothly then most anyone could have anticipated.

And Job Well Done for OG tier 5 User Like Myself I was Blown away with how My Loyalty was rewarded.

Thank you for everything and listening,
FT - SolanaSULTAN

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Thank you for the detailed response, Your suggestion of rewarding toward long-term holders and higher-tiered users also reducing the ā€œquick dropā€ rewards for newcomers is something I can definitely support,we also need to keep an eye on the risks of price swings and farming,we canā€™t just assume that everyone will stake and vote. The crypto market can be unpredictable, and not everyone may act in the way we hope,Ultimately, our goal should be to reward those who believe in and contribute to the ecosystem for the long termšŸ¤ž

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The biggest pro of Jupuary is further decentralising the protocol which is a main goal of the dao, you missed that one out!

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Thank you for pointing that out, You are absolutely right,the biggest pro of Jupuary is indeed decentralizing the protocol, and I did mention it in my third point ,but I should have written in more detail :sweat_smile:,Thanks again for the helpful feedback!

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this is not necessarily a con, volatility attracts participants and liquidity to a token which can actually be a good thing

interesting thread

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Appreciate your response!

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definitely worrisome to hold a highly inflationary project, nevertheless Jupā€™s potential to keep growing is there

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Good write up, mate. Releasing so many tokens into the supply would only confirm it as something that could happen the following year as well. All I see it doing is attracting farmers while indicating to current and potential investors that JUP is a highly inflationary project.

RE: Decentralization Arguments ->JUP has one of the largest number of token holders and everyone in crypto mostly likely knows about it. Why should holders/investors/believers dilute their investment just for the sake of increasing holders numbers before even getting close to having 70-80% participation with the holders we currently have? Is the goal to actually have a larger share of holders participating in DAO or is it just to increase holder numbers?

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i have a lot of faith in the team this will be minimal. I back them no matter what

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