Thoughts on Jupuary & New Airdrop Mechanics
While I believe a vote is likely to pass, I think we should consider introducing some novel mechanics, similar to Sonic’s approach with their FTM migration. Specifically, we could implement a locked airdrop that vests over a year. On Day 1, users would be able to claim 25% of their allocation as liquid tokens. However, claiming this liquid portion would result in forfeiting the remaining 75%. The rest of the users allocation would then vest gradually over the year.
Furthermore, we could explore tokenizing the users airdrop in the form of an NFT, which can be listed. This would allow users to exit without negatively impacting the market, similar to Beanstalk’s approach with their fertilizer and silo deposits. There is always the SPL-404 standard as well!
Concerns about Token Price Impact
One concern is the potential impact of another Jupuary event on the token price. If not handled carefully, a large airdrop could lead to downward pressure on the price, particularly if participants immediately liquidate their tokens. Implementing the vesting mechanism could help mitigate this by reducing immediate sell pressure.
Criteria for Airdrop Allocation
When determining criteria for the airdrop, we should consider Jupiter’s full product range, not just pure swap volume. Swap volume alone is vulnerable to farming and exploitation by opportunistic users. Instead, we could take into account other factors, such as:
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Stakers
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JLP holders
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Staked JupSOL holders
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DCA users
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Limit order users
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Perpetual traders
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Ape users
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Jup Holders
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Poap Holders
By evaluating the full range of users across Jupiter’s ecosystem, we can ensure the allocation is more fairly distributed to those who engage with and support the platform’s various products, rather than just those farming swap volume.
Discouraging Unstaking Post-Snapshot
To further protect the airdrop’s effectiveness, we could implement penalties for users who unstake after the snapshot by reducing their allocations. Taking two snapshots as part of the criteria would also help prevent gaming the system. Additionally, unstaking after Jupuary could impact users’ final allocations, ensuring the rewards go to long-term supporters.
Based on comments from Meow, I sense the team is already thinking along these lines. I believe a more comprehensive approach like this could be constructive for the JUP token long-term.
Let me know your thoughts!
