Proposal to Condense the JUPUARY Airdrop Period to 2 Years

General
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Executive Summary

This proposal recommends that the planned JUPUARY airdrop of 2.1–2.4 billion $JUP tokens be condensed from a three-year distribution period to a two-year period. By accelerating the timeline, this approach aims to enhance community engagement, increase market liquidity, and deliver a more immediate and impactful distribution of tokens. The proposal outlines the potential benefits to both the Jupiter exchange and the wider community, while also addressing risks of prolonged airdrop campaigns.

Background

Jupiter Exchange is preparing to distribute 2.1 to 2.4 billion $JUP tokens through an airdrop campaign called “JUPUARY.” The current plan is to distribute these tokens over a period of 2-3 consecutive years. While this plan aims for long-term engagement, there are key advantages to condensing the distribution to two years. This proposal outlines how shortening the campaign timeline can maximize the impact and benefit of the airdrop for the Jupiter Planet.

1. Increase in Annual Token Distribution

Condensing the airdrop period from three years to two would significantly increase the number of tokens distributed each year. For example:

Current plan (3 years):
- Distribution of2.1B/2.4B tokens = 700M/800M tokens/year.

Proposed plan (2 years):
-Distribution of 2.1B/2.4B tokens = 1.05B/1.2B tokens/year.

By distributing a larger quantity of tokens per year, the campaign becomes more compelling for participants, creating a sense of urgency and driving stronger annual engagement instead of long term motive.

2. Enhanced Community Engagement and Participation

A shorter airdrop period, coupled with a higher distribution rate per year, will likely foster increased community interest. The anticipation of larger rewards over a more condensed timeframe could spark higher levels of activity, encouraging both new users and existing token holders to engage more actively.

This increased engagement would benefit Jupiter in several ways:

  • Greater visibility: More users will likely share the news about the airdrop, contributing to organic marketing.
    -Incentivized behavior: With higher stakes, users are likely to hold and trade $JUP, adding momentum to the ecosystem.

3. Increased Market Liquidity and Token Demand

Faster distribution could improve the circulating supply of $JUP, thereby boosting liquidity and facilitating smoother trading on the exchange. This liquidity is crucial for creating an active and dynamic marketplace, which benefits both traders and the exchange itself.
Additionally, a higher supply within a shorter period can potentially:
-Fuel market demand: More tokens in circulation may attract larger institutional players, increasing volume.
-Stabilize prices: Increased liquidity can help absorb price volatility, making the market for $JUP more stable and attractive.

4. Avoiding Campaign Fatigue

A prolonged three-year airdrop could dilute community interest over time, leading to diminishing returns in terms of user engagement and excitement. The novelty of the airdrop could wear off, and participants may lose motivation as rewards become less impactful or predictable in the later stages.

By condensing the campaign to two years, we maintain momentum and ensure the airdrop remains a highly anticipated and engaging event throughout its entire duration.

5. Strategic Alignment with Project Growth

A faster distribution schedule aligns more closely with Jupiter’s likely growth trajectory. With token distribution completed in two years, Jupiter can focus on new initiatives and phases of development without the extended overhang of an ongoing airdrop. It provides the flexibility to pivot to other value-adding campaigns or product launches post-airdrop, keeping the ecosystem dynamic and forward-looking.

Potential Risks and Mitigation

While the proposal presents numerous advantages, it is important to consider potential risks:
-Risk of Token Oversupply: A faster distribution may cause an oversupply of tokens in the short term, potentially impacting the token price.
Mitigation: We can consider liquidity management strategies, such as staking mechanisms or temporary lock-ups, to prevent excessive selling pressure.

-Community Reception: Some participants may expect a longer campaign and perceive the shorter timeline as limiting their earning potential.
Mitigation: Emphasize that the larger annual rewards create a stronger value proposition and build excitement for more immediate benefits.

Conclusion

Reducing the JUPUARY airdrop period from three years to two presents a strategic opportunity to maximize engagement, liquidity, and overall excitement around the $JUP token. This proposal offers a more concentrated, impactful airdrop campaign, with the benefits of driving short-term enthusiasm and aligning with the long-term growth of Jupiter Exchange.

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Nice write up but I’ll have to disagree.

Jupuary is an exciting time. It brings Solana together. And it excites people each year.

I want to see as many of them into the future as possible rather than Condensed them down

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The motive behind JUPUARY is to reward old users and onboard new users
Same amount of token will be distributed and the motive behind it will still followed if the JUPUARY is reduced to 2 consecutive years.

We still have lot of way to onboard users to Jupiter and solana at large
ASR, WG grants and lots more that will still surface in the future

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Honestly i think that there is too much expectation, weight and thoughts in people’s heads in relation to airdrops. Many will be disappointed in January, remember my words. My recommendation to everyone would be to forget to think about it and i am pretty sure the team thinks exactly the same. Just use JUP as you would normally do, not with an airdrop only related motive. I think that @meow stressed enough already about this and its clear that JUP ecosystem wants organic community, build useful tools for everyday use, create value for the people, holders and not farmers. Nonetheless farmers (assume there is a huge amount of them) are only good to stress-test the site to see how much IP requests, volume the site can hold etc, but those will leave once the pipe closes, while community will stays.

Few that i brought in to the platform (not active in discord) they use JUP to trade and their goal is gains, nobody even thinks of an airdrop, none of them once asked me about it. If not other they ask me about info and give feedback of possible improvements. :ringer_planet:

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Good proposal, but I agree with my two colleagues, @lochie2001 and @macximus it is true that there are many expectations for JUPUARY although it is a beautiful time as Lochie says where a large part of the solana ecosystem comes together, you also have to see the work behind it. @meow has been stressed for some time warning us not to make expectations that he doesn’t even know if it will happen (This will be voted on soon). Now there is a great focus and work on how to form a real community where there are different types of working groups that give more visibility in IRL to the Jupiter ecosystem and enhance each of its areas. Jupuary goes against the current PPP thinking, as soon as the largest % of farmers realize that they didn’t get a big piece of the pie for doing a big volume on jupiter…they will launch FUD and there will be a few weeks full of conflict, although I think that too It’s part of the path. I trust this community and the teams so that everything happens in “equal” parts, I mean that we are all happy according to their efforts. :green_heart:

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Explained well, but also I have to disagree. In Germany we say “to aim cannons on sparrows” which means to use too big and radical measure on little things.

My analogy here is that something like that should be only considered a viable solution, if there is reason in the first place. I can not see that the 3 years are bad or have any major downside. Basically, for no relevant reason, “lets speed things up and boost it”.

Like adding 30% horsepower to a car, makes it better right? But if the car is only meant to deliver milk in the neighborhood it seems unreasonable.

A different comparison I see is with token release schedules, like if a project admits to their dillution failing, the grasp for drastic measure. They can not stabilize a token for example because of massive inflation issues. So the introduce something big and crazy to accelerate distribution like… Lets go from halving every 4 years to annual halving. Boom. Steroids!
Or lets burn 30% of the supply because it creates buzz and then things go faster and ultimately it creates impact.

It is that sort of thing where it is easy to find logical arguments “on paper” how it can have a positive effect, but ultimately the truth is whatever nice words you use about “enhanced engagement”, “impactful distribution”, “increased interest”, “spark activity”… etc. in reality you are pretty much just taking down 33% lifetime of the campaign and shower tokens out for no other real reason than “bigger numbers go pew pew pew”

My Conclusion:

While the proposal outlines the potential benefits to both the Jupiter exchange and the wider community, while also addressing risks, it does that not very balanced and is super weighted into one direction and biased. While risks are mentioned they are downplayed and pretended to be nothingburgers, hence the offered mitigation approaches are a piece of cake. In reality it does neither play out that smooth, nor are these all risks or are the risks easy to waive.

If anything, I would personally stretch the timeline more out, given that next Jupuary should run through as promised. But further down the line, if anything, it needs longevity not acceleration for not reason. Let’s apply boosters only if things are stuck or really need a push.

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100% how I’m feeling too. This is key

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They sure will . It’s inevitable but as cadets we must protect jup NOW.

We can do that by explaining to people trying to farm that jupuary Is a gift and not expected. We are doing this right now and it’s great.
Second of all, We need to remind him that it’s not guaranteed and we still need to vote on it.
Thirdly We must remind him it’s not based off site volume. It could be a number of things, Most likely be community based. So since we do this, we can offset a lot of the fud

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Such a good thread but I don’t agreed because I think team already have a well schedule algorithms to execute the jupnuary process only if the proposal pass.

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Okay…It was nice resding this

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Been looking for a nice way to disagree. I think condensing Jupuary will attract farmers who will dump the project. It also doesn’t align with Jupiter’s PPP philosophy.

Token rewards should gradually be given to community members who are here to stay, engage with the product and help grow the community not to farmers who will abandon the project once the party is over.

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Sorry I hate to pile on but I will have to disagree as well. I think having as many as possible is best and attracts excitement to our project for a longer period of time. By shortening it, I feel like we may shorten the hype around Jupiter in the long term, which is not something we want to do. This is a marathon, not a Sprint. Well I agree it was written very well and I do see your points in my mind it just goes against what we as Jupiter Catdets are striving to build with Jupiter and the community.

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This proposal doesn’t make sense, in my opinion. It feels like a theory dressed up with fancy points, but it ignores the realities of token economics and long-term sustainability
sounds like a way to increase engagement and excitement in the short term, it completely misses the bigger picture. Releasing 1 billion+ tokens per year would flood the market with almost 100% of the current circulating supply. That’s not a trivial amount. Such a massive supply unlock will undoubtedly cause panic selling as people rush to cash out their rewards, No amount of liquidity management strategies can fully protect against the sell pressure that this amount of unlocked supply will create. Giving out more tokens in less time doesn’t necessarily drive stronger long-term,Airdrops should incentivize long-term loyalty and involvement, not create a pump-and-dump cycle , ok think i should write a complete proposal on it, thank for bringing your suggestion it will help me with a lot of points

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I think that whatever the founders initially came up with idea should be followed since those were the ideas that elevated the project to the level it is now

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To begin with, the proposal is well written and kudos to you for the work put into it. I was preparing to respond when I came across the argument you made in its defense. Since it aligns with my overall thoughts while reviewing the proposal, I felt it would be best to present my counterargument by addressing this point directly.

Reducing JUPUARY to two consecutive years undermines its potential long-term impact. Spanning JUPUARY over a longer period, three years in this case, not only sustains engagement with existing users but also establishes a consistent and prolonged incentive for new users to onboard. The initiatives like ASR and WG grants might aid onboarding, but they target different audiences and purposes, while JUPUARY provides a unique, recurring opportunity to build a loyal user base. Limiting it to two years risks losing out on its cumulative effects in user retention and network growth.

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i must say i dont agree.
jupuary is something the community can always look forward to and can be done as many times as possible.

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Irrespective of jupuarys, Jupiter suite of products will always be widely used as far as Solana exist, and, perhaps extend to other chains in future.

In my opinion, this jupuary(if passed) will be the last.
The stress, expectations, disappointments/bad blood it will occasion will warrant a pause.

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