Fixed-Term Staking Strategy for $JUP
The idea is to offer an alternative to ASR staking that provides more attractive yields for those willing to lock their tokens for a longer period, without requiring active voting. Here’s how it would work based on the chosen staking duration.
1. 3-Month Staking
Users who choose to lock their $JUP for three months receive an APY of 12-15%, slightly higher than the returns from the ASR program over the same period.
In addition to the yield, they receive:
- Priority access to airdrops from new projects on Jupiter.
- A discount on swap fees, allowing them to optimize their transactions.
At the end of the three months, they can withdraw their funds or restake them for another cycle.
2. 6-Month Staking
Those who opt for a six-month lock-up enjoy an annual yield of 18-22%, which is significantly more attractive than two consecutive ASR cycles (which would yield around 26% over six months but require regular voting participation).
In addition to the yield, they gain access to:
- Exclusive investment pools on Jupiter, granting them access to opportunities reserved for mid-term stakers.
- A bonus in $JUP if they choose to restake their tokens at the end of the period, encouraging longer-term commitment.
This staking period is strictly locked for six months, but users have the option to extend their staking to one year mid-way to benefit from higher rewards.
3. 12-Month Staking
Those who commit to staking their $JUP for one year receive the best rewards, with an annual yield of 30-40%. The goal is to maximize the incentive to hold tokens long-term, thereby stabilizing the Jupiter ecosystem.
In addition to the yield, they obtain:
- A share of the revenue generated by Jupiter, allowing them to benefit directly from the platform’s growth.
- An advanced role in governance, with the ability to participate in more strategic decisions beyond standard voting.
This staking period is strictly locked with no early withdrawals, but those who renew their staking beyond one year receive an additional boost to their APY, rewarding their loyalty.
Why Is This Approach Attractive?
- It complements the ASR program by offering a passive alternative for long-term investors.
- It rewards patience with significantly higher yields than ASR alone.
- It diversifies incentives by integrating non-monetary benefits (governance participation, revenue sharing, fee reductions).
- It strengthens the ecosystem by encouraging token lock-ups over longer periods.
By combining these three staking levels, Jupiter can attract different investor profiles, from cautious participants to committed long-term holders, while maintaining strong demand for $JUP.