72.35% of Eligible Wallets Yet to Claim Jupiter ASR, What Does This Mean for JUP?

Jupiter’s highly anticipated Active Staking Rewards (ASR) went live this weekend, distributing around $60M worth of tokens to the Jupiter faithful. Despite palpable excitement and positive reception to the event, onchain data suggests that many JUP stakers are ignoring their rewards.

23.5M JUP Tokens Still Unclaimed, Why?

With 50M JUP tokens allocated to incentivize participation in Jupiter’s governance platform, it would appear that voters are in no rush to claim their share of rewards. At press time, only 26.5M, or 53%, of allocated JUP tokens have been claimed by eligible voters.

Remarkably, of 476,297 unique voting wallets, only around 131,700 accounts have stepped forward to collect their allocations since the claim window opened at 1 PM UTC on July 6, 2024. With only 27.65% of eligible wallets claiming their rewards the question has to be asked, why?

While many claimants were pleasantly surprised with the amount of tokens they received, most eligible wallets only claim small rewards. According to data provided by Flipside Crypto, over 60,000 wallets are eligible for less than $10 worth of rewards, with a further 44,000 claiming less than $100. 

Combined, this suggests that approximately 79% of claimants received less than $100 during the ASR event.

This data is consistent with the analysis provided by 0xYankee on behalf of the Jupiter DAO, which indicates that the median claim among JUP stakers was 47 JUP, valued at roughly $34.

The claim rates of LFG candidates were even lower. Given the smaller pool of allocated tokens, many voters were only eligible for a few cents worth of each asset, leading many claimants to ignore these rewards. SHARK was the least popular of all LFG candidate tokens available for claim, with only 2.2% of allocated SHARK claimed so far.

What Happens Next?

The Jupiter ASR claim window will remain open for a month, allowing plenty of time for JUP stakers and voters to collect their rewards. When the window closes, all unclaimed tokens will be returned to the Jupiter DAO wallet and potentially included in other upcoming incentives.

Since the claim window has opened, many accounts have made the decision to unstake their JUP tokens and withdraw from the protocol’s governance platform. 

Taking into account Jupiter’s 30-Day unstake period, over 14,000 wallets are now scheduled to fully withdraw from Jupiter governance by August 7th.

This is expected to release approximately 8.84M JUP into circulation. However, this is unlikely to cause any volatility in market dynamics, considering that this figure represents less than 1% of the JUP circulating supply. Given that JUP typically records over $124M in trading volume, the release of 8.84M JUP, valued at roughly $6.5M, is unlikely to affect the price.

Looking ahead to future Jupiter ASR events, the Jupiter DAO is considering implementing a minimum staking requirement of 50 JUP to be eligible for ASR. It is believed that this would reduce the number of wallets eligible for micro allocations that are unprofitable to claim.

It is also believed that raising the minimum staking requirement will help solidify Jupiter’s governance voters and encourage consistent participation. During the last ASR period, only 5.7% of eligible wallets participated in every vote, while 20.88% only voted once.

Despite the relatively low number of wallets claiming their rewards, Jupiter’s inaugural ASR event has largely been seen as a successful experiment. Jupiter founder Meow has frequently attested that Jupiter’s ASR is not meant to be seen as a giveaway, but rather a “virtuous cycle where committed JUP voters gain an increasing amount of voting power”.

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