The Jupiter airdrop in January will distribute 700 million tokens, which is nearly 55% of the circulating supply of 1.35 billion Jupiter! Such a massive unlock has the potential to shock Jupiter’s price. This time, we don’t even have a deep liquidity pool to support it!
My Proposal: The liquidity used in Jupuary 1 should be placed back in a revised price range for a 2-month period. For example, this range could be between 0.6 - 1.2 USD.
Second Proposal: The Jupuary airdrop should be distributed in a locked format. To achieve this, we will give users three options:
If they want to claim the airdrop immediately: There will be a 40% airdrop deduction.
If they want to claim the airdrop over a 3-month period: A 25% deduction will be applied.
If they want to claim the airdrop over a 6-month period: No deduction will be applied. Instead, deductions from options 1 and 2 will be rewarded to those choosing option 3, similar to Debridge’s approach. This will incentivize users to opt for the 6-month option.
What will this achieve?
First, we will avoid a massive supply shock.
We will reward users who believe in and trust the future of Jupiter.
In the long run, this will make Jupiter and the Jupverse more valuable and sustainable.
This strategy will create a healthier ecosystem and strengthen the community’s confidence.
in every airdrop, there this possibility of dumping token this happens all the time, but in this case, Jupiter has massive community behind them, many are still gon hold for much longer period. those who will sell will eventually sell even when locked after six month. the airdrop can come through the staking wallet for those who are stakers and non stakers can received their right into their wallets.
I can agree with the over all sentiment, the issue with it is just that it seems harsh to introduce limitations in the very end where people upfront did not necessarily agree to.
While it is good to give people options I see issues with option one as on one hand it is a huge cut in, while on the other hand, if too many would still go for it, it would create and issue per narrative.
Imo easier to just propose option 3 and have a vote on it. First proposal does not go well with how DeFi works and seems a bit complex to place a price burden and then lifting it after 2 month anyway.
Also it was not really mentioned, what happens with the deduction.
It is the nature of airdrops, and hence I am not the biggest fan of it, to provide the users with that airdrop at their discretion.
I do not like them and prefer locked release schedules best even on coherent stakes, but then again those are not real airdrops.
Airdrops are a bit crazy, but that is what they are defined as. I think in Web3 there are too many terms used with a “but”…
It is DePIN … but you can not own the physical devices
It is DePIN … but it is an app and no hardware
It is DeFi … but we want you to do KYC via Google Acc
It is decentralized … but facilitated via a centralized entity
It is a DAO … but only ten people can make decisions
It is an Airdrop … but we will not give it to you right away
See… I really hate airdrops and the nature of Web2 spamming and early claiming involved into it, with all the multi accounting and quick-buck-grabbing involved…
The supply shock is a significant risk for an airdrop of this magnitude. To mitigate this risk, a linear airdrop could be implemented.
The same options (direct airdrop, 3 months, and 6 months) could be offered, but with a linear distribution for options 2 and 3. The penalties proposed for options 1 and 2 seem suitable to encourage recipients to hold onto their allocation.
The linear distribution helps avoid the supply shock effect. As for the undistributed portion for options 1 and 2, it could be added to the unclaimed amounts.
While a large token airdrop can create concern about price volatility, it’s important to consider that not all 700 million tokens will necessarily hit the market immediately. Many recipients may choose to hold onto their tokens rather than sell, especially if they believe in the long-term potential of Jupiter like most of us in here do. Therefore, the assumption of a significant price shock might be overstated without considering this factor.
Overall, this proposal you have suggested can balance short-term liquidity concerns with long-term Jup project health, but they must be communicated transparently to avoid backlash and if possible put to a vote like @Merlin-M-Ostermann suggested so that there is alignment on both sides from the team and the community receiving the tokens.
I think this is a great idea, and definitely something we should take note of.
I’d suggest incorporating “Voting Power” in the locked period, I’m not sure if this is really possible for the team. But would be cool to have people being able to use their airdrop as voting power, but not sell it quite yet.
Anyways, seems like a great strategy to avoid a massive supply shock.
Look, I’m happy for them to do the same drop style as last year as the results speak for themselves
Vesting does make sense however, but I’d personally oppose it.
I would be in favor. we can’t do the same launch as last year as we have built too much for a dump to occur. I don’t really care because I have faith in the community. But it would encourage blocking for a period of 6 months with profit percentages for those who decide to let go quickly.
I’m actually seeing this as suggestion not really as a proposal and I think a day ago I come across @meow post on
X x.com
which highlighted the importance on “liquidity depth” which can helps to control massive dump from whale. Some lock incentives or airdrop can lead to massive FUD from jeeter, I believe in the team because I knew they came prepared, they know better algorithm which can be apply to control the price because if you locked for 10 Year some will still dump all after cliff. The ASR experiment and platenary is one of the best event which talk about CAT= Certainty Alignment and transparency…
Lock with cliff can only work among dao because they have more understanding regarding jup and believe in the future of Jupiter ecosystem.
The only thing I will add here
Is that if the Vote for JUPUARY pass and eventually we have JUPUARY.
I will want the token to be distributed as ASR is distributed.
Once the token is claimed
Then it should be auto-staked.
Wether the token is locked for 1 year to avoid massive dump, the time will lapse and those that want to dump will still dump it.
People can’t say NO to further reward they will got off ASR.
It’s simple logic and not meant to be autocratic Decision
I will naturally vote against vesting as well. People have earned this tokens through one criteria or another and they should be given the freedom do what they want to do with it and the free market should determine the price when these tokens are airdropped. The most important reason why criteria for ending these tokens need to be well thought through so they end up in the right hands who believe in the project one way or another.
We could allocate different amounts to different portions of a potential snapshot. For instance if you meet the criteria for voting it could go directly to your staked JUP account. That would alleviate that amount getting dumped. For instance 30 percent of the airdrop.alocated to JUP voters. 30 percent of the airdrop will be locked for 30 days like the ASR rewards. Then the other portions can be allocated out with less of a shock. Just a thought.
Yeah truly it’s a free market.
If you find it worth you hold for long term.
I believe in jup that’s while I’m around here.
Jup got alot of potential.
J4J, PPP Experiment .
There will always be a price impact no matter how you do it as there are still roughly 5.65 Billion JUP to be issued, put into circulation.
Locking the amount for some period would help definitely smooth a bit that price impact. I am as well in favor that “immediate claim” should have a reduced claim value. Your proposal is valuable and it would help grow a long-term holding community, those that really believe in the project and are prepared to stick around for years to come!
6 months waiting sounds insane to me being that I’ve had JUP Staked for over 6 months anyway watching my investment drop in price. I believe in the community whole heartedly but thousands of dollars is thousand dollars and id like to feel ‘actually’ rewarded for the long stay.
