Jupiter’s founder, Meow, emphasized the importance of rewarding genuine users and preventing opportunistic ‘airdrop farmers’ from exploiting the protocol.
By Bena Ilyas
Edited by Marco T. Lanz
Updated
2 mins read
The Jupiter DAO community, which governs the Solana-based decentralized exchange, Jupiter, has approved a massive $860 million incentive plan. The vote was part of the highly anticipated “Jupuary” airdrop initiative and marks a fundamental shift in the JUP token’s landscape.
The proposal, which allocates $860 million in JUP tokens over two years, was initially met with resistance. The plan was revised and reintroduced after the first vote failed to get enough community backing. This aligns with the Jupuary initiative’s goal of rewarding Jupiter users each January based on their previous year’s activity.
Several protections have been added to prevent tokens from falling into the hands of short-term “airdrop farmers. ” These farmers typically exploit protocols for quick rewards without engaging long-term. Jupiter’s founder, known as “Meow,” emphasized the importance of rewarding genuine users instead of opportunists.
Meow emphasized the need for maximum effort to direct JUP to individuals with strong potential for becoming long-term members, avoiding allocation to farmers or users focused solely on niche groups. A substantial portion of the tokens will now be reserved to promote holding, purchasing, and active involvement within the community.
“We will be hyper focused on including as many real users as possible, using key parameters like actual holdings, participation in the ecosystem, and consistency/place of usage. Notably, unlike the first Jupuary, bots will be explicitly excluded,” said Meow.
In order to ensure fairness, a snapshot of eligible users was taken in November. Those who qualify will be able to check their eligibility status through a link set to be released later this month. The tokens will be distributed in January, staying true to the annual Jupuary tradition.
While the vote’s approval has brought excitement, the JUP token saw an 8.24% decline in the last 24 hours. However, the 24-hours trading activity saw a 25% surge and the weekly timeframe shows a 3.80% gain. The JUP token’s recent dip highlights lingering uncertainties and a loss of immediate momentum.
Despite this, signs of bullish sentiment are starting to appear. Exchange Netflow data shows fewer JUP tokens are being deposited on exchanges. This indicates that investors are opting to hold their tokens rather than sell, which reduces the circulating supply and potentially boosts the token’s value.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
