The Jupiter DEX aggregator may change its tokenomics, though the ideas are still in the early blueprint stage. The project’s founder and lead dev set out a few guidelines, which may turn into a DAO voting proposal to overhaul the tokenomics of JUP for more fair benefits to the community.
The founder of Jupiter DEX, who goes under the @weremeow handle, recently drew a proposal for its future with more sustainable tokenomics. The main shift is a lower supply of JUP tokens and more tools to give back to the community first.
For now, the proposal is not even in its final draft and will not affect JUP any time soon. However, @weremeow expects to be ready with a proposal for a community vote. Jupiter DEX aims to be more than a gimmick project and become an important staple in the Solana economy. Jupiter aggregator is also highly transparent and community-oriented, and its founder and lead developer keeps a high visibility social media profile.
Read: Jupiter DEX Opens Access to Multiple Solana Tokens, Now Accessible in Coinbase Wallet
In a longer stream, @weremeow explained that Jupiter is not answering to big early investors, and instead wants to give 50% of token control to the community. The team will still retain significant influence, to be able to change the model of Jupiter with different market conditions. Yet the upcoming shifts in tokenomics aim to give back earnings from the platform to the community first.
The most significant change would be a cut to the JUP supply by 30%, in addition to lowered JUP issuance over time. The vote for the current set of proposals will take place in July.
Jupiter lines up among top aggregator services
Solana is experiencing peak activity on Raydium, with lower trading levels on Jupiter DEX. Yet Jupiter aims to act as an aggregator, offering better pricing and liquidity conditions.
The Jupiter aggregator grew its value locked to above $915M while managing trading volumes as high as $29B in 24 hours. Just months after its launch, Jupiter is on track to take 10% of total aggregator volume, even as a single-chain app on Solana.
Jupiter is surpassed only by the ODOS multi-chain aggregator and has three times the value locked of 1inch, another highly popular cross-chain DEX. Overall, aggregators are quickly growing in popularity, with more than 297% in volume growth in the past quarter.
Jupiter’s JUP wants to evolve from a low-float token
Jupiter’s JUP token has a fully diluted market cap of $7.49B, but the tokens in circulation are estimated at just above $1B. In total, 1.3B JUP are available for trading, fees and other activities on the Jupiter DEX aggregator.
Also read: Jupiter’s Strategic Evolution: Pioneering Change in DeFi Tokenomics
JUP also has a significant overhang, with a token supply of 10B. This token profile is becoming a red flag, at a time when exchanges and traders are paying attention to projects with significant rewards for the team and early investors.
However, Jupiter Exchange had a fair distribution, with a community airdrop on January 31. Additionally, JUP tokens are still distributed in a retroactive airdrop, which has another 41 days to go. The tokens are given to all participants in the Jupiter ecosystem.
The token allocation was favorable to the community from the start, but the team still has a 40% share of the total supply. All tokens have been unlocked immediately since the generation event in January. The proposal of @weremeow may change that, with another lockup period. This would allow the community to receive more rewards based on holding JUP.
JUP trades at $0.77, after peaking with the whole crypto market in April, at above $1.80. JUP is well-represented on exchanges, with a highly liquid Binance pairing, as well as availability on Kraken.
The Jupiter DEX allows free trades but charges fees for limit orders and DCA orders. Additionally, some participants may include additional fees, and Jupiter will take a 2.5% cut. Community rewards may turn significant, as Jupiter Aggregator is now the sixth-largest app on Solana, and is trying to catch up with Raydium.
Cryptopolitan reporting by Hristina Vasileva
