I thought I’d start a topic to discuss the above as couldn’t see a place for it on the research forum.
I am a little bit confused by it, so hopefully others in the community can shed light on it and we can debate ahead of the upcoming votes.
Firstly on the buybacks. The team mentioned on the planetary call that they would be buying tokens with the 50% every hour from next Monday, and that tokens would be locked for three years. They also said that they “want more JUP” and whilst they weren’t specific with how they would use these tokens, they heavily implied they would have uses for them in the future. This doesn’t really feel like a buyback in the traditional sense? If you buyback tokens, but then give distribute them to someone else later down the line - it doesn’t really have any impact at all does it? Also, it kind of feels like this kind of thing should be subject to a DAO vote? What does everyone think?
Also, Meow’s 555 plan - I just find it a bit confusing. He mentioned there was a need to incentivise the new teams that JUP had acquired (which makes perfect sense), and then noted that there was a team strategic reserve which could serve this purpose. But then Meow fronting the arrangement, and then drawing 220m JUP bonus in 5 years from Community reserves - just feels like a bit of a land grab? Surely the purpose of having a strategic reserve is exactly for the purpose that they are using it - why does the community allocation need to be involved in this? What is this 220m community reserve currently earmarked for? What exactly is the community being asked to give up by voting for this proposal? It felt a bit vague and doesn’t really make much sense to me.
Also, I get that people want more JUP, but it feels a bit disingenuous to set up all the tokenomics with a very vocal 50/50 split, and then start rowing back from that and engineering ways for the team to have more JUP, which is kind of how it feels with these two initiatives.
They touched on this at Catstanbul, basically it’s gonna be used to fund “community talent” you can find the livestream on YouTube it’s called “JUP is goat token” or something along those lines.
This whole 555 seemed pretty confusing to me at first. It took quite some time to put it all in context. Here is my visualization of it for you all. Feel free to correct me, comment and share.
Don’t be naive. They will never put up to the vote something like that. These kind of decisions are made by the team only.
Look back at the 1st Jupuary proposal. 85% of the wallets (58% of the voting power) voted “yes”. Just because the whales didn’t like the proposal, the team decided they should impose a threshold. Do you think they’ve asked us to vote if we agree with that threshold? Nope. It was an unilateral decision and, guess what? We couldn’t do anything about it.
I doubt anything it’s going to change in the near future.
As per the tokenomics it was allocated to the community. They could be used for a variety of things… future ASRs, remuneration for community talent, future Jupuaries… but the point is it belongs to the community, and allocating 22% for Meow throws the entire 50/50 philosophy out of whack.
The more people get informed, the better the decisions will be. There are people here with varying degrees of capital and experience… give them some time to learn instead of just being negative about the process…
Why some of these funds can’t be used to finance this project? Why don’t we keep it 50-50?
Why not option 3: 140M from team’s strategic reserve and 140M from community reserve.
To be clear, I am not against the proposal. Part of me really really likes the incredibly bullish bet that Meow is wanting to take, and him having a big incentive is beneficial to everyone. I just wish it was a bit more transparent on the pros and cons, but it sounds like that may be forthcoming in the essay that drops (probably soon).
Sort of reminds me of that pay deal that Elon Musk was able to negotiate at Tesla where he set massive objectives and got $50bn in shares for hitting them.
Got ya. I was referring to a 3rd option. I don’t think $5 Jup in 5 years is a massive objective.
What do you think about buybacks now? I think buybacks at this stage of the cycle is just waste of money. A better option in mho will be to start dca-ing after the next Jupuary.
I agree, you’d think if JUP achieves anything near what it wants to, and with growth in the Sol ecosystem + buybacks for five years, $5 should be smashed to pieces especially in the bull markets inbertween.
I personally think the buybacks are useful and a positive step towards towards adding utility for the $JUP token. I know the team say that the value in the token will be created from building something that people enjoy using and something that scales, which is partly true, but also, the token has to accrue value somehow and at some point - at least this buyback creates a mechanism for that to happen which should become more material over time.
This can encourage people to buy, hold and stake $JUP. It can encourage people to use the protocol, and this creates that flywheel they talked about on the call.
I think it’s important to remain positive and trust in the JUP team. Not everyone needs to be overly positive, but let’s give the future a chance to show the results. I believe the team knows exactly what they’re doing, and I’m confident they have a plan that will bring long-term benefits. Trusting their decisions is key, as they are working on building an evolving ecosystem. It will be exciting to see how everything plays out!
