Let’s first acknowledge that JUP holders, stakers & voters are not shareholders they are stakeholders, and they have no official capacity within the Jupiter organisation. Meaning the term “conflict of interest” is misguided in its use here.
If we think about voting at the DAO, and if we were to use @JUPWhale reasoning, then all votes would be classed in the same way, as one could argue there’s always financial benefits or perceived loses or alike to be found for stakeholders when voting.
To conclude, this potential vote on the next round of Jupuary is in no way a substantially greater “conflict of interest” than any previous vote (if we were to continue to use that term incorrectly). The usage in these circumstances is non-applicable as voters hold no roles or capacity within the Jupiter organisation, so there are no official loyalties which are being conflicted when one votes as a stakeholder.
first and foremost i never understood the idea involved in contributing a portion towards stakers, what do you think ASR rewards was meant for? aint 215m from unclaimed JUP enough to fund another year? seeing the deadline and considering the amount of stakers it boosted from 500k total wallets to 600k in couple days thats insane, even if stakers are involved in jupuary remember it gets more diluted in governance which meow made it clear we will never allow governance in such a manner.
imo stakers are big reason why $JUP as a token is where is right now. Without them price would not hold that well. We are who shill JUP hard, who believe, who used OUR own money to purchase more tokens, who making X threads, listening to every Planetary call, coming with ideas how to improve Jupiter, etc.
Everyone had a whole year to buy $JUP and become a part of community. Thus giving this bonus to voters bring even more eyes on staking and becoming active member of community.
ASR is the main lure to keep old voters, bring new voters in and make voting even more decentralized. If we simply vote for “give away whole jupuary” to users, our ASR share would be instantly diluted and at the end we will be these who pay for this fun.
Totally with you! Stakers aren’t just passively holding, they’re the active force pushing $JUP forward. The time and effort from people in Planetary Calls, making threads, and constantly spreading the word is what keeps Jupiter’s community strong and the token stable.
Prioritizing rewards for voters and stakers doesn’t just recognize that commitment; it builds a clear path for others to join and engage meaningfully. ASR as a reward is essential to keeping voting decentralized and incentives aligned. Giving away Jupuary benefits without any staking or voting commitment would undermine everything people have worked toward.
I’m fully behind this idea too, keeping value in the hands of those actually building up the ecosystem.
To be clear, I’m responding to YOU, not to JUPWhale. Broadly I think he’s on the right track, you on the other hand suggested we should axe Jupuary entirely.
Secondly, you made the claim that effectively if you increased the market cap by 50%, you’d have an equivalent reduction in price immediately. A fundamentally flawed premise to base any decision making off because its completely wrong and you’ll not find a single example of this.
No one who understands markets would make this claim. You have hundreds of examples industry-wide showing this isn’t the case. There’s a link, but its not this simple, not even close.
Circulating supply isn’t a direct 1:1 sliding scale with market cap.
It seems you still aren’t reading the full posts but rather taking pieces of it to argue that you are right and I am wrong. I have mentioned that the market doesn’t work exactly the way I’ve sampled it. The post is Reasons why we should not have another Jupuary which introduces the reasons why we should not have jupuary.
I’ll quote myself here
I’ll just answer short. It is correct, these are the reasons why we should not have another Jupurary. There are also reasons why we should have it. This thread looks only one side of the equation and I was expecting and waiting others to highlight the other side, just like you did. And more posts and thoughts why we should have Jupurary are welcome. Then we can all see both sides and make decision if the positives outweigh the negatives.
Fully agree. Anybody stating that volume should not be heavily factored in is dismissing the largest contribution to jup. I’m sorry but staking and governance would have no value if there was not ahem : volume as a foundation for everything. The allocations I am seeing proposed for individuals that have 100k plus volume are offensive. I managed to reach beyond that starting from less than 3 figures this cycle. I don’t think being a whale has anything to do with it. I have missed some votes but have participated in 4 proposals. My asr reward was almost not claimable due to the fact I only had 1 sol of Jup staked. After coming into the ecosystem in April and having since swapped over 500k in volume I am certainly looking forward to seeing how this plays out. To date the most generous airdrop I have ever witnessed was $apecoin. It is my humble understanding that Jup plays a way more integral role in this space, providing much functionality in this Wild West marketplace. There is no other exchange that I felt more comfortable swapping with after only a few weeks in Solana. I do not want to get my hopes up, was never trying to farm an airdrop. Didn’t even know about the significance of jupuary until July of this year. By then I had my first 100k of volume. Just given the amount of notional value I have swapped, dca’d, and perp volume. Its hard not to expect something significant come January.
Yes, the incentive to primarily accrue value through whales having more governance power and more stake value is not a sustainable way to manage a protocol. Its idiotic and disingenuous frankly.
We don’t need a second set of ASR rewards with a different name, they already exist and importantly it should be said that this further would entrench lesser decentralization, part of the primary purpose of tokenizing and doing airdrops.
Focus should be users, and primary purposes of the product like swaps and perps.
I do think staking make sense as an anti-sybil deterrent and as a factor of the drop, just not towards the primary beneficiary.
The reality and anyone honest will agree, is that there is a balance to be had here and some stakers inevitably want to get their bag and get out.
A linear allocation set at 50% of Jupuary for stakers would be an unfathomable pay day for many, and I don’t think those that would vote for this would care if it has a negative impact on decentralization, is essentially just ASR 2.0 and doesn’t benefit the broader community of users in any way at all.
I read the post, the first thing you wrote was unbelievably wrong (that a circulating supply increase could be assumed to cause a 1:1 price decrease or an equivalent drop in “value”) and when the title of your thread involved reasons to not have another Jupuary, I’m going to address the primary reason, the first point you made with incorrect assumptions.
I recognize you later state in the same post that the market doesn’t quite work like this, but even the concept of the price change being 1:1 “if demand stays the same” is just based on a misunderstanding of market dynamics.
If you’re going to write immediately after 75% of your entire post that “we know markets don’t work that way” and then cease defending the grounds of the first 75% of your post, then you shouldn’t have done the write up as such or bothered with the equations to begin with. Generally in writing we lead with strongest point first.
Do I think that it will cause a temporary price decrease? Sure. However I also think a linear drop or reneging on what were clearly promises (repeat statements that this would happen) would also likely reduce positive sentiment towards Jupiter. Maybe the linear approach even worse because it creates an us vs them between 100 or so top staking whales and 99.99% of the broader community. Also in particular, users vs stakers.
I’m a long time user here, have been pretty active on discord and have a very decent bag of $JUP and parctipate on all votes with all my $JUP (never sold any). And still I’m against providing a lot to JUP stakers. We already have ASR to give a benifit to holders.
JUP should be a way to give a gift to new and old users that actually used the platform (DEX) and tried to push JUP out there in the world. Voting itself didn’t make JUP (the DEX) greater but the use of the DEX did
Excellent comment! Thank you very much for your valuable contributions to the topics I started @Jeanlucbb0
Also many people don’t seem to understand that a 50% supply increase, at the only would cause a maximum price decrease of 33.3%.
But that is assuming 100% sells the airdrop, which is highly improbable. We might be looking more at something like ~ 10% sell pressure (estimation / guess) which would only result in a potential few percent price decrease at most.
The entire issue of 50% inflation is a non-issue and it’s a mosquito being turned into an elephant.
The 1st round of Jupuary already proved that it doesn’t have a substantial negative effect on the price, and the 30% token supply burn should have already taken away any last concerns with people not understanding the economic market dynamics of these things.
And even less people understand that to recover from 33,3% price decrease you need 50% of your bag as an extra. In vacuum, If supply increases 50%, you need 50% extra or you are on the losing side. To recover from 3% price decrease (your guess) you need 5% to be airdropped. You also underestimate the risks which makes me question have you really been involved as long as your twitter bio claims. I understand what you are trying to do here and I keep my fingers crossed that you succeed.
Regarding ASR - Roughly 30% of the circulating supply is staked. Roughly 80% of staked JUP are voting. ASR remains 50M per quarter with or without jupuary. Supply increases roughly 50% which means ASR dropping to 8% per quarter. Add the trend where ASR been decreasing from 22% to 14% the past 2 quarters and we’ll prolly see 4-8% for Q1. That would be 25% a year in case the ASR ROI downtrend doesn’t continue, which we can’t predict with decent certainty. Actually it doesn’t even matter because it would be a financial suicide to rountrip your altcoin bags anyway.
But you know what, I like you corrected that 215M to 200M. And have a great weekend JUPWhale and others.
Fully agree. Coming from a trad fi background it was not even 3o days I spent swapping in phantom before i realized that way better methods were already in place. Not to mention limit orders / dca, very standard functions as it relates to any exchange. All of these features have been rolled out as new in the short time I have switched from using custodial wallets. These features are not even 365 days old lol.
But yeah let’s give more to stakers. Makes perfect sense.
Very well said. Adding the noun verb gumbo + math did not do much to articulate a well put argument. I can’t say it any simpler than asr is not jupuary. I know this is too much for some folks to understand. The proposal as it relates to any of this will clear all this up.
I’m aware of the risks but as a long time entrepreneur I don’t shy away from them. I have a positive mindset and I don’t fear much. And yes I’ve been in Bitcoin since 2013 and became more active with mining, trading, investing, consulting etc in 2017 and have been on Solana trading and as a developer for 1 year. Sure I’ve made my share of bad decisions, but I learned so much.
I think staking JUP is great with ~ 45% APY and a potential 5% - 10% ‘‘price shock’’ isn’t a solid reason to unstake and avoid the ‘‘risk’’. Especially since I’m suggesting an additional 15.9%+ from the Jupuary pie to the JUP stakers.
The entire issue of 50% inflation is a non-issue considering maybe 5% - 10% of people sell the airdrop. The 700M JUP airdrop comes with a lot of media attention and hype bringing new buyers to JUP also. Overall I think it’s just plain old FUD, albeit unintentional by most people.
And have a great weekend JUPWhale and others.