Jupiter to Torch 3 Billion $JUP Tokens in Historic Community-Driven Move

In a daring move, Jupiter Exchange has unveiled a proposal draft that could reshape the future of its native token, JUP. The proposal, spearheaded by co-founder Weremeow, outlines a plan to run a substantial 30% of the $JUP supply, a move aimed at bolstering the token's value and fostering deeper community engagement.

Key Proposal Highlights:

• 30% Supply Reduction: The proposal calls for a permanent reduction of the total $JUP supply from 10 billion to 7 billion tokens, a significant decrease of 3 billion JUP.
• Team Sacrifice: To demonstrate their commitment, the Jupiter team will voluntarily relinquish 30% of their allocated tokens, aligning their interests with the community's. Furthermore, the team, including co-founders Weremeow and Siong, have pledged to extend their vesting period until June 2026, showcasing their unwavering commitment to Jupiter's long-term success.
• Reduced Emissions: Jupuary emissions, the token distribution events, will also be reduced by 30%. For instance, Jupiter distributed 1 billion JUP tokens to more than 900,000 users in one of the largest airdrops on the Solana blockchain in January 2024. The next Jupuary in January 2025 would see a distribution of approximately 700 million JUP tokens, reflecting the reduced supply.

Financial Implications

With the current circulating supply of 1.35 billion JUP and a price of $0.7953 per token, the current fully diluted valuation (FDV) stands at approximately $8 billion. The proposed reduction would slash the FDV by a whopping $2.4 billion, a move that could trigger a significant price surge.

J4J Experiment and Community Eats First (CEF)

The proposal is part of a broader initiative called "J4J" (Jupiter for Jupiter), which focuses on community-driven growth. It also introduces the "Community Eats First" (CEF) concept, where the team prioritizes the community's well-being above all else.

The Road Ahead

The full proposal is expected to be released in July, followed by a community vote to determine its fate. If approved, the changes could usher in a new era for Jupiter Exchange, marked by a more engaged community and a stronger, more valuable JUP token.