Jupiter Community To Vote On Reducing JUP Supply By 30%

The community for Jupiter, a Solana-based decentralized exchange aggregator, is preparing to vote on a proposal to reduce its token’s supply by 30%.

Voting will begin on Aug. 1, with the proposal advocating for reducing JUP’s supply by nearly one-third by shrinking both team allocations and new token emissions by 30%.

The supply reduction was first floated in June. Meow, Jupiter’s pseudonymous founder, said the move will “cut the fat” from the project’s fully-diluted valuation and address community concerns regarding the JUP’s high rate of new token emissions.

JUP ranks as the 68th largest cryptocurrency with a $1.3 billion market cap and circulating supply of 1.35 billion tokens. However, one billion JUP are currently scheduled for distribution to community members in annual airdrops over four years, meaning JUP’s supply will be subject to heavy inflation moving forward.

Claims for JUP’s first airdrop closed on July 31, with 780 million of one billion JUP claimed by nearly 640,000 users. The remaining 220 million JUP were returned to Jupiter’s community wallet.

The Jupiter team is also earmarked four billion JUP, evenly divided between a “strategic reserve” alongside team member allocations, held in a four-of-seven multisig account. Team member tokens are subject to a two-year lock-up from February 2024, with vesting to commence from February 2025. Jupiter’s four-person core team was additionally allocated 450,000 USDC worth of JUP for first-year salaries.

JUP’s supply is programmed to max out at 10 billion JUP, giving it an FDV of nearly $10 billion at present.

‘Community eats first’

On July 31, Meow penned a lengthy manifesto outlining core principles underpinning how the Jupiter team’s tokens will be managed with the aim of ensuring that the community “eats first.”

Meow said that Jupiter’s team tokens originally scheduled to begin unlocking during the first year of vesting will be staked for two additional years. Both Meow and his fellow co-founder, Siong, also committed to locking up all of their tokens until at least June 2026.

Meow added that most other team members have similarly committed to locking up the majority of their token allocations over the same period, pledging to liquidate “only what they need for their personal financial security” from February 2025.

Jupiter’s community will also receive at least three months advance notice ahead of the project releasing any of its strategic reserve tokens for strategic reasons, with Meow emphasizing that reserve sales will be managed proportionally to available market liquidity.

Jupiter consistently hosted at least $200 million in trading volume throughout July, down from more than $1 billion in Q2, according to DeFi Llama. The protocol also boasts a total value locked (TVL) of $599.4 million, ranking it as a top 10 Solana protocol.

The price of JUP is down 43% since posting a local high in April, according to The Defiant’s crypto price feeds.

Related: Jupiter’s Launchpad Mechanism Riles Up Crypto Community