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Jupiter DEX plans a 30% token supply reduction

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In a recent interview, the CEO of Jupiter DEX unveiled a strategic move that will see the team reduce the total supply of the JUP token by 30% soon. This decision, he emphasized, is a vital part of a comprehensive roadmap designed to enhance the platform’s tokenomics, foster community engagement, and drive long-term growth.

Reducing the token supply will benefit the community significantly, including increased token value and a more robust token economy.

Jupiter DEX, a leading DEX (decentralized exchange) aggregator on the Solana blockchain, stands out with its unique offering. It leverages the Solana blockchain to aggregate liquidity from multiple Solana-based DEXs and AMMs (automated market makers), providing users unparalleled access to the best available prices for token swaps.

Jupiter offers advanced features beyond swapping, including limit orders, dollar-cost averaging (DCA), and a perpetual futures trading platform with up to 100x leverage. The Jupiter Liquidity Pool (JLP) allows users to provide liquidity and earn fees from the perpetual trading platform. Liquidity providers receive 70% of the trading fees.

In the discussion, the CEO noted that there will also be a voluntary 30% cut from the team’s assigned allocation of $JUP token. The token, which was launched at the end of January 2024, had an initial supply of 10 billion $ JUP tokens, with a maximum supply of 10 Billion $JUP tokens.

As part of its gesture to support users, 1 billion $JUP was allocated for airdrop while the team was allocated 20% of the total supply over 2 years. With the new structure, 30% of this 20% will be given up by the team for the success of the project, the CEO said.

The airdrop allocation, which started in January, saw thousands of users of the DEX get rewarded for using the platform. The event is called Jupuary and will be done yearly until 2026. “I would like to secure the community buy-in for two more seasons of Jupuary and ASR,” he revealed. “I think the completion of these will give us sufficient time to really establish a much wider audience, engaged community, and proven DAO to execute on our long-term plans.”

Within this period, the CEO noted that the Jupiter team “are committing to locking all tokens vested till June 2026, well beyond the 2 Jupuaries.” He hinted that the team commits to averting any supply shock on the token over this vesting period.

He believes these proposals are possible because, with no direct investors in JUP, this move aims to streamline the Fully Diluted Valuation (FDV), encourage deeper community understanding of JUP tokenomics, and address concerns about high emission levels.

Meow added that within these two years, the goal is to expand the number of users of the Jupiverse, Jupiter’s entire ecosystem. Jupiter aims to establish the grand unified market (GUM), creating an all-encompassing exchange and liquidity infrastructure for global financial use cases.

In other news, Solana Foundation expels validators after sandwich attack scandal.

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