Case Study: Distribution Strategy for 700M $JUP Tokens

[Jazy]

Even 220 sounds too little for me

I will only vote for Jupuary if it’s +50% for stakers ( 350M tokens )

[Tama]

great case study , however i’ve locked my $JUP till 2040, got no plans of unstaking anytime soon…

[Asimsy]

Stakers already get ASR they shouldn’t get a further 350m tokens, that’s seems insane. I do think they should try some allocation but 50% is wild

[JUPWhale]

Hahaha. That would be a crazy 788 JUP airdrop per 1000 JUP staked or 78.8%; in your dreams! That only benefits the largest whales (and only in the short term) not the community or Jupiter users. The most I can imagine is 110M JUP which on 440M staked is 25% or 250 JUP per 1000 staked - which would be a significant amount for all JUP stakers.

Simple math: JUP allocation / total JUP staked x 1000 = airdrop per 1000 JUP staked. For example 110M / 440M total staked x 1000 = 250 JUP airdrop per 1000 JUP staked.

[Jazy]

ASR are 200M tokens yearly ( and stakers must have the tokens locked for 30 days )

Here you want to drop in one day 700M to people that don’t even hold JUP and that most likely will end up dumping on those that are taking the risk of locking our tokens.

As a staker I have it clear, no thank you.

[Jazy]

" in your dreams "

Okay I didn’t know that you are the one deciding here

Sorry next time I will be sure to ask for your permission, I promise.

[JUPWhale]

@fact_troller

Distribution Strategy: Vesting and Penalty Structure

Wow great idea! I do like the concept of your idea! (just some feedback about application).

I especially would like to compliment you on the new and original concept you’re bringing up of the bonus sourced from the penalties!

The same concept could also be implemented with different duration of eg. instant, 1 month (medium to big penalty), 2 months (smaller penalty), 3 months (no penalty) and 4 months (bonus from penalty).

It probably won’t be easy to implement on short notice and for the team to integrate this into the LFG platform, but this will be totally up to the team to assess and evaluate.

[JUPWhale]

PS: This concept has also been discussed also in another topic, but with a different application (which was less extreme and easier to implement, and without the brilliant idea of a bonus sourced from the penalty). I’m sharing it here since you probably haven’t seen it yet:

@miuq

I was thinking if there could be few options for the claim. I don’t know how long the claim period for J1 was but let’s call it 3 months. During this 3 months people would have option to instantly claim, lock till end of Q2 or till end of Q3. Instant claim would receive 80% of the tokens and the rest would be added to this separate lock pool. Claiming end of Q2 would give 90% and end of Q3 100%. People could use this locked JUP to vote on proposals and receive ASR.

This would encourage people to jump into DAO and decentralise it further, decrease any potential price impact of jupuary supply release and also reward people who decided to lock their jupuary airdrop and be long term JUP holders.

This would require some efforts from the team to build the UI or modify existing ones (for example adding the claim in the same place where voting is) but I don’t see it adding unnecessary complexity for people who are receiving the airdrop. They would just get an alternative if they want to claim it right away or keep it locked and vote with it.

And

@JUPWhale

Cool idea! I also like the application you’re suggesting and the percentages of 80%, 90% and 100% are also reasonable. I would suggest end of Q1 and Q2 instead.

This would indeed require quite some coding and small UI addition. It will be up to the team if they like the idea and find it worth putting resources and time into.

More simplified option to implement might even be two options; 1. Get 100% as staked JUP into the DAO with the regular 1 month unstaking time like the current DAO system, or option 2. claim 90% instantly. Could also make a percentage scrolling bar or open field to indicate how much you want to stake and/or claim.

That would be a great way to usher new users into the DAO (and dilute ASR ).

PS: Jupuary round 1 had a 6 month claim period actually until the middle of 2024.

And

@miuq

@JUPWhale

More simplified option to implement might even be two options; 1. Get 100% as staked JUP into the DAO with the regular 1 month unstaking time like the current DAO system, or option 2. claim 90% instantly.

This would be much easier to apply for sure and even more simple to understand for a user and drive more users in to voting / decision making. Sure it would dilute ASR little more but the golden times of ASR are over anyway.

I hope the team catches this one.

[JUPWhale]

Yes exactly, he was quite clear in the latest J.U.P. Really.

@JUPWhale

About Jupuary, Meow made it clear that he wants there to be 2 more rounds of Jupuary, but that in the end it’s the community which decide. The sentiment on the Jupresearch forum seems to be that at least 80% to 90% of people is in support of more Jupuary’s, so we have to continue to talk about the IF of Jupuary, but about the HOW.

Also in my opinion the team and the community can’t afford to cancel round #2 anymore, because the round #2 period from November 2nd 2023 to November 2nd 2024 has already been completed. It’s only the airdrop for all the round 2 activity which is still pending.

You could only cancel any new round, which would be round #3 starting this week and the coming 12 months, without completely betraying all trust of the Jupiter community.

Round #2 has been clearly promised by Meow last year:

@JUPWhale

There have been clear promises for multiple rounds of airdrops, taking place every year during Jupuary (January). You can find several of them in the Grow the Pie update #1 alone: https://www.jupresear.ch/t/archived-grow-the-pie-update-1/.

@0xSoju

(This blogpost was written by Meow in November 16, 2023.)

There will be future rounds of airdrops for new users, so stay tuned for that.

and

@0xSoju

40% will be allocated to the community over 4 rounds of airdrops. 10% will be allocated in this round, which will be 1B tokens. We expect to start one more round of growth oriented airdrop before token launch.

and

@0xSoju

de-duplication is not a particular area of concern for us, but will definitely be for future rounds.

We await for a proposal by the team of HOW to do Jupuary, and the community will continue to discuss it and vote on it in the DAO. In the meantime, we can share and discuss any valid arguments (no personal attacks) and any data-based analysis and insights.

At first impression from @D3vpurity his post, Meow doesn’t seem very fond of a vesting idea, but maybe if the solution is simple and an elegant solution like he said, he would be open to consider it.

One more thought about this; instead of doing penalties you can also pose it as a bonus only for staking (eg. 100% instant claim, with a 10 - 25%% bonus for staking. The bonus could come from reducing the allocations from all the different distribution categories.

[D3vpurity]

Why not total voting power by each wallet ?

[miuq]

That is good idea, put some weight for how long people been staking, just like ASR does. We even have this tool now so we can see data, which is pretty cool - JUP voting leaderboard | CyberaResearch | Flipside

People are trying to sybil even the voting… it’s ridiculous.

[Jazy]

The day you will realize that it doesn’t need to be linear the world will change for you

[Jeanlucbb0]

Agree with meow’s point, broadly why I think the second drop should reflect the ethos of the first, even if the criteria is substantively different and in my opinion, more complex, thereby harder to game and rewarding distinct types of users.

Just from broad observation I’m unconvinced the vesting has a significant effect on token price, merely it shifts the timing of a temporary hit to a longer term suppression. Albeit I did think the earnestness/community allocation vesting for sanctum was the right thing to do.

Maybe if there is any linear component (which I disagree with broadly but that’s another story) it should be vested, as would maybe a community allocation.

My guess is JUP in general is a token for a project that is viewed as valuable, and therefore people are much less likely to dump than for something like the 24th Ethereum L2.

[kuwagowl]

This thread became really toxic. I don’t like this. This is not catdet-like behavior. What happened?

[JUPWhale]

An open forum needs to be properly moderated to ensure that the guidelines of that forum are being honoured. It seems like many posts with duplicate topics are being approved, and toxic replies with personal and unfounded attacks are not being removed and/or warned about.

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[lochie2001]

Which comments specifically??

[Azrangar]

Well, not sure what complexities this will add for the team but what would be better is staking and vesting so the voting power can be used.

[hunnndini]

I’d like to hop in here and mention meow is treating all of his JUP holders/stakers like we are his employees.

If you all have ever worked for a company that offers stock options, you are not able to have access to those options immediately!

[Rico_JHE]

That’s a very interesting idea. I think the penalty pool for those who claim later is a great way to incentivize to hold off. The only question I have is wouldn’t we want them to be a part of the DAO? If they have to wait to claim then this may make it difficult to recruit them to the Jupiverse. Yes they have JUP but they may not be contributing or participating in the day to day. We want to recruit to the Jupiverse and keep people there. Although that may make ASR less lucrative it would increase the JUP brand.

[miuq]

They could have the voting function open for the unclaimed JUP.