A brief analysis of Jupiter鈥檚 second token disposal proposal: where will the $190 million JUP go?

Original | Odaily Planet Daily ( @OdailyChina )

Author: Azuma ( @azuma_eth )

Jupiter, the largest decentralized exchange based on Solana, is advancing its second major vote ( J4J #2) on the disposal of its JUP token. The voting results will directly determine the disposal of approximately 215 million JUP (approximately US$190 million).

In early August this year, the Jupiter community passed the first major vote on the disposal of JUP ( J4J #1 ) with a 95% approval rate. The vote decided to destroy 3 billion JUP (30% of the total supply) to reduce Jupiters maximum supply.

According to the plan mentioned by Jupiter founder meow, Jupiter plans to launch three JUP disposal votes called J4J Zu solve the problem of JUPs excessively high FDV, establish optimal transparency in token distribution, and allow the community to vote on the potential issuance of JUP.

The proposal currently being advanced is the second of these three important votes, namely J4J #2.

The background of this proposal is that Jupiter carried out an airdrop activity called Jupuary earlier this year. Since the airdrop was not fully claimed, there are still about 215 million (215,461,850.21) JUPs left. . Based on the current market prEis of approximately $0.88, the total value of this portion of JUP is as high as $190 million , which is an asset that cannot be ignored for any protocol.

Last night, Jupiter founder meow launched a governance draft on how to deal with the 215 million JUPs in the governance forum. The draft mentioned three disposal plans, namely:

• Use the tokens for the Active Staking Rewards (ASR) program over the next year;

• Destroy tokens;

• Return tokens to the community multi-signature wallet.

meow mentioned that the Jupiter team currently prefers the first option because ASR has successfully demonstrated in the past few months that it can drive community participation in every proposal, discussion, and vote, so investing funds in ASR can help the Jupiter community continue to grow.

In the following, we will briefly count the specific scale of ASR and calculate the reward increase effect of the above scheme on the existing ASR plan.

The so-called ASR is directly translated as Active Staking Rewards. ASR is a staking and governance reward method designed by Jupiter to reward community members who stake JUP and actively participate in governance, voting and discussions, and encourage them to integrate more deeply into the Jupiter ecosystem.

The source of ASR rewards mainly consists of two parts. One is 0.75% of the LFG Launchpad fee (this part comes from the specific LFG issuance project, so it will be composed of multiple tokens), and the other part comes from the initial allocation of 100 million JUP provided by the treasury.

In early July this year, Jupiter issued the first round of ASR rewards, distributing a total of 50 million JUP to all community users who voted on proposals between March and June this year. Now the ASR plan still has 50 million JUP remaining, and plans to start distributing it in October to community users who voted on all proposals between July 1 and September 30.

Based on the results of the past two quarters, ASR has played a significant role in motivating community activity.

As of meow鈥檚 post, a total of 585,000 addresses have staked 361 million JUP; after 12 votes since the launch of the program, each vote attracted an average of 280 million JUP participants; a large number of discussions and suggestions can be seen on the relevant governance pages of each vote.

Therefore, in order to maintain the ASR incentive, meow and the Jupiter team suggest that the 215 million JUPs mentioned above continue to be used for ASR incentives in the coming year, with an average of 50 million JUPs released each quarter . The remaining 15 million JUPs will be temporarily returned to the treasury and used for specific future needs.

Based on the current ASR staking scale as a benchmark for static calculations, 200 million JUPs are invested in the ASR incentive pool, which means that users who stake 361 million JUPs can enjoy a guaranteed return of 55% in the next year – excluding other income from the 0.75% LFG Launchpad fee.

Clearly, this solution is sufficient to continue to ensure the attractiveness of the ASR program and maintain the communitys willingness to participate in the Entwicklung of the Jupiter protocol.

It is for this reason that meow and other Jupiter team members openly support this plan and call on the community to vote in this way.

However, this does not mean that this plan will definitely pass. Among the other potential plans listed by meow, the option of direct destruction is also considered by some community members to be more in line with the interests of all JUP holders, rather than just stakers. However, considering that the users participating in the vote are all stakers directly linked to the ASR incentive, the first plan is still more likely to pass.

According to the current schedule, voting on this proposal will begin at 15:30 UTC time on September 27 (23:30 Beijing time). Odaily Planet Daily will continue to pay attention.

This article is sourced from the internet: A brief analysis of Jupiter鈥檚 second token disposal proposal: where will the $190 million JUP go?

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