Jupiter Whales Are Opting Against “Growing The Pie” in Crucial Ongoing Proposal

With three days left to vote, approval looks unlikely in Jupiter DAO’s critical live governance proposal.

Published: Nov 26, 2024 at 14:55

One day into what is arguably Jupiter DAO’s most important governance proposal in history, onchain data suggests $JUP whales are not interested in “Growing the Pie”.

However, Jupuary hopefuls shouldn’t lose faith just yet. Despite the show of force from larger wallets, over 500,000 wallets are yet to cast their vote.

Can pro-Jupuary voters switch the DAO’s decision?

Jupiter Proposal Still Short of 70% Threshold

On November 25, Jupiter DAO opened its most crucial governance proposal to date. Lasting four days, the J4J #3 Jupuary proposal empowers $JUP stakers to vote on the continuation of annual $JUP airdrops, distributing 1.4B $JUP tokens to platform users over the course of two years.

Based on current voting, the critical proposal is unlikely to be approved. At press time, over 53% of weighted votes are in favor of continuing Jupuary, roughly 17% short of the required 70% threshold.

JUP governance proposal

$JUP whales are demonstrating a strong aversion to “sharing the pie” through continued Jupuaries. According to Flipside data, the vast majority of wallets are voting in favor of the proposal, with 83% of wallets opting for more Jupuaries.

However, the influence of larger wallets cannot be underestimated. While only 17% of wallets are voting against the proposal, their collective decisions constitute 46% of the total weighted voting power.

whale wallet

This suggests $JUP whales are voting against the proposal, likely attempting to avoid a large dilution of their holdings in favor of more gradual token release through future ASR (Active Staking Rewards).

Taking to 𝕏, Jupiter co-founder Meow expressed the importance of obtaining a 70% supermajority, highlighting that the process requires “the strong buy in of the core community of stakers”.

500,000 Wallets Yet to Vote

While the proposal is still around 17% short of reaching the approval threshold, Jupuary hopefuls shouldn’t lose faith just yet. According to Flipside and Jupiter data, over 500,000 wallets are yet to cast their vote.

Historical data suggests that the proposal may yet see another 100M votes before a final decision is reached. The current vote has garnered roughly 260M votes from stakers. In comparison, Jupiter DAO’s two most recent proposals witnessed around 360M votes, suggesting that there is still plenty of room for DAO consensus to change.

What Happens Next?

If the current Jupiter DAO proposal to continue Jupuary fails to pass, the Jupiter team has made it clear they will endeavor to draft a new proposal based on community feedback. The current proposal indicates there will be no lock or imposed vesting on the Jupuary airdrop, though this may change if future iterations of the proposal are required.

This could mean a revised proposal outlining different conditions under which Jupuary could still operate.

Unstaking JUP

Regardless of the proposal’s outcome $JUP unstaking rates are hitting all-time highs, with 134M $JUP set to return to circulation in the next 30 days. However, if the proposal is denied and chances of a Jupuary 2025 airdrop diminish, we may see $JUP stakers return in order to reap the ongoing benefits of Jupiter ASR.