Jupiter Initiates New Proposal to Reduce Future Token Net Release to Zero

Odaily News: Jupiter COO Kash has initiated a proposal on the governance forum, aiming to reduce the net release of JUP to zero for the foreseeable future. The proposal primarily addresses the three main current sources of JUP release — the Jupuary airdrop, team allocation unlocks, and Mercurial quota unlocks — with specific strategies as follows.

First, indefinitely postpone the Jupuary airdrop, returning all 700 million JUP tokens to the community multi-signature cold wallet for future use. The usage amount and staking snapshot at the current point in time will be preserved. When market conditions, token status, and market sentiment become more suitable, this matter will be re-discussed with the DAO.

Second, indefinitely suspend token releases to team members. As an alternative, team members will receive JUP in the form of Jupiter balance sheet liabilities — if any member wishes to sell their allocated tokens, Jupiter's balance sheet will directly purchase them. This move will further strengthen the JUP reserve while demonstrating the team's commitment to the future of the JUP token.

Third, fully hedge against selling pressure from Mercurial stakeholders, accelerate their unlocking process, and purchase an equivalent amount of tokens through Jupiter's own balance sheet to absorb any impact from potential token sales.

The relevant proposal will undergo community discussion on February 16th, with voting commencing on February 17th.