Why Stakers Are Paying for Jupuary: The Risks of the Airdrop and a Call for Sustainable Growth

[macximus]

All this info was known (how much tokens will be released) since the start and each investor should pivot accordingly and needs understand what are the pros/cons going forward based on how the tokenomics have been designed.

btw: Staking rewards will drop yes, and they have been overly generous anyways (around 70%+ apy). We need to be real and understand that nothing lasts forever!

Even so i always have advocated that we don’t even need 7 billion of total supply, 1-2 would have been enough, but that is not up to me to decide and at this point of time it is what it is and even so always repeat - why not put everything at once into circulation, which would probably put the price back to launch price, but it will built up back over time.

[MegaB1973]

@TheGopher

The essay by Meow was compelling but entirely vague. I’m in private chats with other stakers and it’s the first time we are considering unstaking and selling. I assume our thoughts are reflective of stakers at large. Many of us are silent because the loudest voices are all parroting the same group think.

Hi @TheGopher, just wanted to say I relate a lot to your post and completely agree. I am a little bit uncomfortable about how all this might play out, and the messaging being delivered by team. I listened intently to the Jup rally call where Meow was talking about the vision (and no disrepect if you’re reading this, Meow, it’s all love! but this criticism is supposed to be constructive), but he didn’t really talk about the vision or the end game at all.

The very clear messages that have been delivered by the team recently are:

-Stakers are not going to be rewarded, though they might be considered for some kind of bonus (which personally I don’t think is reasonable or enough).
-you shouldn’t buy JUP - Meow literally inferred that Jup price wasn’t going anywhere in the short term - “you should have multiple bags”, “I need two years”, “I refuse to pump the price” i.e. don’t rely on a bag of Jup this cycle…

So what is the point buying the token? Or holding it while you watch every other sol token pump? What is the point staking and voting - doing all the things Jup team wants to encourage on one hand - but on the other hand they’re going to do things which disadvange you because you’ve done those things in the first place! It’s nothing to do with PPP or PVP if on a very base level you’re just going to be financially disadvantaged by choosing to support the project - which is what they want, and what we want to do

Meow keeps saying he wants to do something wildly differently from what’s been done in crypto before, and that’s fair enough, but I think he needs to share the vision more, the dream, what’s the pot of gold at the end of the rainbow - so that stakers/holders can either get onboard with the mission and recognise it’s going to take time to get there, or get off the train.

[MikeAF]

I missed the first Jupuary as I just held SOL and just was kind of deciding what direction to go in. I don’t think there should be another one if I’m being perfectly honest. If it does, I think it should be geared towards JUPSOL and JLP holders. They are the backbone of the believers in Jupiter along with the JUP stakers who are incentivized already.

JLP is inarguably the most important asset in the Jupiterverse and the most risky. This is where the majority of revenue for the project comes from as far as I’m aware.

[Tiamoesg]

All stakers should DEFINITELY get some JUP from JUPuary. — should they get the majority? Not if you want to grow.

I don’t know why it has been stated so hard that stakers aren’t gonna get anything. —- the whole idea is about celebrating together, as Meow has stated. —- if current community members and stakers and users don’t get JUP from JUPuary… that would be pretty stupid. Everyone needs to receive a little bit of energy for their involvement; but us as core members can be happy with receiving 10 JUP or whatever. Some small amount; maybe we receive something else, like a lit community NFT.

All of this could be easily cleared up if Meow and team would simply say that all the stakers get dope stuff and get rewarded for their loyalty and participation; AND we are giving out tons of tokens to grow the pie with new community members.

[Tiamoesg]

Most of these points are focused on economic and investment mindsets rather than fundamental community thinking and growth mindset. So, it is a little difficult to redirect each point without an essay… but one thing I wanted to focus on and bring up is the BONK example.

I watched BONK do their thing over the last year and they did great things for the hardcore Solana community. Many people attribute their work to saving Solana and keeping it going. — It seems like they had a huge effect and definitely helped keep the spirits high; but it doesn’t seem like they did that much for growing the pie in general. The value added and the methods were really focused on the current community. And even if there were ideas that were executed on to try and grow the user base and focus on bringing value to new users…. The thinking and execution wasn’t on a level that could reach the level of expansion and impact that Meow and Jupiter are on. —- The methods of each (JUP and BONK) can’t really be put side by side because they are in entirely different scales of the game; with different focal points.

I personally haven’t seen Burning have much of an impact for projects and pricing, but I’m sure there are some examples that people can give.

When it comes to the airdrop; most JUP community members have been activated through the previous airdrop. So it makes total sense that the strategy would be to do it again and better. There are different tiers of users and different tiers of loyalty; and that is the discovery that we are going through as a community. — not as a business with investors.

It seems like the real point to make here is that Jupiter is intending on forming a real community of coherence and resonance and they have an incredible product that makes incredible revenue and is only just at its seeds stage. — this means that Jupiter will grow immensely and have absolutely no problem creating tons of wealth for its token holders. — I don’t think anyone is actually worried about token price when you look at the long game. The price is going to be way above $1.20, after a successful Jupuary, maybe some weeks after; maybe some months after. Maybe a day after. Who knows. There will be TONS more community members and users; AND the price will go up.

The whales that are leaving are welcomed to leave. If you can’t afford to go through the true moments of alignment; because your bags are too big… Then you’re not in the right place. A real whale who is a real catdet is going to have full vision on what is happening. Some will double down right now after reading this; and some will reduce their coverage to something manageable for the transitionary period when JUP gets airdropped again.

Long story short; JUPuary is going to add unfathomable value through exponential curves and we are all going to be the better for it. The only fear that comes up is from the people who are focused on making money. —- the purpose is to focus on making a strong and functioning community… the money is already taken care of thanks to the incredible dev team of Jupiter; and the fantastic ecosystem of Solana.

JUP is going to be worth a lot more money in the near future.

Research Note:
(Most people are complaining about the stakers paying the price for the next JUPuary… but it feels like the majority of the stakers are probably from the last GIFT? So… seems like a moot point. Would love to see some stats there.)

[ardenghost]

Hello MegaB1973,

It feels like I am reading through a mirror I was about to write something similar to this.
Meow is great with “great words”, however, the end game is still very blurry and doesn’t give much confidence.

The fact that the team and the founder do not seem to want to persuade people on why buying jup is great is very concerning.

The fact that they want us to trust them blindly, we are talking about money, without knowing the end game is an appetite 9 out of 10 people will not have.

The essay was vague, had to try to read between the lines which is meh.

The Jupuary thing must change, Jupiter is not where it used to be one year ago. There are 477m staked tokens right now, and 5m+ have been unstaked in the past 72hrs+, you may argue and say “let the jeeters leave”, but this amount is concerning and growing.

The current Jupuary has it is will not bring us together, it’s already dividing us.

Meow has a vision and it seems he wants to hammer it hard in our brains. A small subset of the community called Yes men will ride with him, however the majority have shown concerned that are being ignored and not addressed.

Hopefully, once the vote does not pass, we do not want a new proposal, send jup to the multi sig, we will figure it out during the bear market where emotions aren’t running wild.

For those interested, I wrote a post on how Jupuary could be changed.

We need to stop having this ONE WAY THINKING about giving out hundreds of millions of free tokens because it’s marketing or thinking it will increase the user base to the detriment of the current users (some have staked for almost 1 year).

Hope things change on Monday after the vote.

[nucky.sol]

I agree with almost everything… with the exception of not having another vote. If this is what the team needs than we need to work together to hammer out what we’re uncomfortable with.

[JUPWhale]

This quote is outdated and Meow has recently stated that he wants to do 2 more Jupuary’s and not infinite ongoing Jupuary’s.

I think ASR has since become a future type of continuation for the ending Jupuary’s, after round #3 would be completed in January 2026.

[aped]

yea every reader end of the day knows that jupuary defines community allocation which was designed from day 1

Important Note About Jupuaries

Remember, Jupuary is not about launching a token. There are thousands of that everyday.

This Jupuary is about creating symbolism, community roots, and crucial new products together.

So this Jupuary, let us launch the symbol for DeFi 2.0 together, kickstart the most elite force to push the meta forward, and wtf, experiment on building a new groundbreaking launchpad.

And by next Jupuary, we will be much stronger, experienced and expansive. And the next one, even more so.

Before you know, it, we will be bringing the goodness of the open meta to everyone.

Let’s do it together, shall we? And after that, the cat will take a break.

50/50
Meow

[aped]

imagine meow coming up with jupuary strategy even after negative results and excluding them because you dont want lol, he already has a clear mindset he doesnt wants boastful attitude anywhere inside the ecosystem haha.

[lochie2001]

@aped

This Jupuary is about creating symbolism, community roots, and crucial new products together.

So this Jupuary, let us launch the symbol for DeFi 2.0 together, kickstart the most elite force to push the meta forward, and wtf, experiment on building a new groundbreaking launchpad.

And by next Jupuary, we will be much stronger, experienced and expansive. And the next one, even more so.

This is very true and arguably the most important thing about jupuary! well said

[lil_cadet]

The supply is already inflated due to the simple fact that there are nearly 10 billion coins in total supply. I will never understand how people do not understand this simple fact.

[lil_cadet]

It is however refreshing to see someone who clearly actively stakes mention that the only reason for staking is for : rewards

Again. If that was your goal. There are many other tokens that offer both better tokenomics / apy for doing this same thing.

Atom being one that comes to mind right away.

The purpose of staking to me atleast is firstly : participating in the dao

Second is any yield that comes from staking

Fully agree that the 70 or 75 percent. Can’t remember for sure, is a very interesting mechanic or the vote. It should be interesting to see what the team does when the initial vote does not pass. Not for an overwhelming 70%, I feel that it will be closer to 50/50 habibi.

[D3vpurity]

@anonymousWhale

The Jupuary airdrop might sound like a massive gift, but let’s be real, stakers are the ones paying for it. Adding 700 million tokens, half the current circulating supply, in one go is huge, and it’s going to hit staking rewards hard.

JUPUARY is already in plan before staking come to existence
I’m sure stakers are aware of 3B token assigned for future airdrop to be released every year January ( 1B each)
Now after token audit and agreement to burn 30% of TS
30% is cut across all allocation

JUPUARY had been here before staking come
That stakers are paying for it, means they don’t know more about the project they are investing or staking
They don’t make their research diligently.

The only thing we should be talking about is how the token be release , and not who will think will get affected cos a plan that had been put in place is about to be executed.

[MegaB1973]

@ardenghost

Hopefully, once the vote does not pass, we do not want a new proposal, send jup to the multi sig, we will figure it out during the bear market where emotions aren’t running wild.

Whilst I agree with much of your sentiment, I’m not going to vote against. We all knew there were going to be aidrops on the horizon (and we all want them!), and I’m certainly not sat here saying that stakers should get the whole lot, far from it. I know the team are reading comments and taking feedback onboard, so just hope they can give us a bit more meat on the bones regarding plans/future potential, to help us stay the course

I am grateful for the initial aidrop, excited by the journey and being part of the biggest DAO on one of the most exciting L1s, so will be putting my faith in Meow and the team.

[ananadrug]

Personally, I will vote against in this vote. For me utility of JUP stays uncertain, its shouldn’t be inflationary token. Giving out free money isn’t good plan for reaching organic growth of community ofc there are many other ways to do it. As Holder I will never vote for dumping my bags at least i will get something valuable(utility, buyback mechanism, burning system). Thats my opinion thanks.

[TabiZzFR]

So why not Increasing ASR to 75M(+50%)per quarter to counter the fact that 700M gonna be release (around +50%) for JUPUARY

People will keep staking and ASR will keep a high APY

[melimin]

this looks so far as a roadmap then pivoting might look unpromising from a new investor perspective thats not good for any project.

[melimin]

tbh myself coming from different blockchain ive been through XRP and just overwhelmingly exploring solana and jupiter is what caught my attention and i do think reward initiative can help a new hand keep exploring the ecosystem, expanding user base thru incentive can be eye catching to dig more deeper.

rotating the rewards just inside aint no more decentralization, i believe. just as a outsider point of view.

[Mlambo28]

You’re right it doesn’t promote decentralization or increase adoption. However pivoting to less dilution should bring in more investors who are turned off by the FDV. If we created some kind of utility for the token like less trading fees for stakers etc along with some kind of token burn I think the sky is the limit. If 75%+ of the supply was circulating I think we’d be at $2-$3 by now. If you want more adoption… money talks. Bring value to the token and by holding the token. Dilution hurts everyone