In this post, we will share about the following topics:
- Symbol For DeFi 2.0
- Next Major Step for JUP
- 50/50 Tokenomics
- Token Minting Ritual
- Cold Wallet Release Conditions
- Team Commitment
- Initial Circulating
- Ongoing Circulating
- Industry Leading Accountability
- 10 Years And Beyond
- Monies Are Memes
Jupiter is the best exchange and the most used trading platform in Defi.
Jupiter aims to be a full stack ecosystem play to drive the meta forward - onboarding the world into a parallel open financial system that operates independently of the locked system most of us live in today.
We are starting that decades long journey today by pushing on a few key fronts:
- A full array of top class trading products
- Driving and leveraging liquidity across the ecosystem
- Growing the pie via ecosystem initiatives, including Jupiter Educate & LFG Launchpad.
Currently, JUP is the governance token for the Jupiter ecosystem, which will be voting on a range of items crucial for the ecosystem, including launchpad projects, strict list disputes and grants. Given that the agenda of the DAO is to drive the decentralized meta forward, we expect a lot of interesting proposals. As the DAO matures, it will overtime take on more and more crucial decisions. More details on the DAO will be shared tomorrow.
We believe JUP holds great value as the symbol for DeFi 2.0, and we reject the persistent “utility” myth for tokens that utility grows value, and believe that this myth is the greatest distraction and value destroyer ever, despite it persisting in CT narratives. We refuse as such and especially since utility is not part of the genesis narrative. Please do not engage with Jupiter if the utility myth is important to you. We will not engage in this discussion.
Instead, we believe the crucial, most value adding thing we can do here is to greatly expand Jupiter by bringing it to the mainstream, exponentially growing the ecosystem, building crucial financial systems like a global atomic market or the global distributed stock exchange.
If we achieve this, then JUP will transition from being a governance token for the best exchange in defi to being the currency for a full fledged decentralized economy. A good next step towards that goal will be to grow the real user base approximately 10x from where we are today.
The core thesis that underpins the JUP Tokenomics is the idea of 50/50, which we shared in extensive detail in this post here:
JUP, PIE, CATS:
You can refer to this post for an extensive outline on long term tokenomics and design. Even tho some details have changed (see initial supply below),
As mentioned in the Jupuary post, one of the most crucial things to get right is the token mining and accountability process.
One of the most crucial aspects of DeFi is abusing tokens that are not circulating and using it for profit or voting or getting hacked due to poor security. As an incredibly important resource, it is absolutely crucial that the entire minting is documented as clearly as possible and unreleased tokens are not abused.
As such, we have engaged 3 of the most prominent leaders in Solana - Mert from Helius, Nico from Neodyme and Stepan from Squads to be cosigners of the cold wallets, where 75% of the tokens will live. We will transfer one team seat to a professional custodian whose job it is to only step in the case of emergencies.
Therefore, it is imposible for the team to use tokens without explicit publicity.
We documented the entire process minting and token transfer process here
These cosigners will make sure that any transfer or activity out of the cold wallets will either be part of the roadmap or have been communicated at least 6 months in advance. In addition, they will ensure these are non-voting accounts as well.
Currently, the only items on the roadmap are:
- 20% for the team (nothing for first year, start vesting feb 2025 for 2 years)
- 5% for Mercurial stakeholders (start vesting feb 2025, schedule TBD)
- 10% for Jupuary (every year)
Up to know, we did not raise money or sell JUP otc, so there is nothing else on the roadmap.
Any other release for the cold wallet (for example a major strategic investor) will have to be communicated at least 6 months ahead of time. In addition, co-signers can refuse to sign if they consider any usage of funds as abuse and a betrayal of the community.
The team has worked relentlessly on Jupiter for years, and remain 10000% committed to working with the community to make Jupiter the global financial marketplace that we know it can become.
Therefore, team vesting will only begin AFTER the second Jupuary, meaning full alignment in making sure the next 2 years are as successful as preceding ones.
Instead of 1.7B as originally communicated, 1.35B will be the initial maximum circulation supply,
- 1B for the airdrop*
- 250M for the launchpool (Instead of 500M)
- 50M for loans to CEX market makers
- 50M for any immediate needs
For the airdrop, we have a buffer of 33M JUP that is not part of this drop, which includes withholdings for compromised wallets, massive number of appeals and edge cases that we could not get to in time before Jupuary.
Out of the wallets in the team/community multi-sigs:
- 0.1B will be allocated as LFG launchpad fees, which will be sent out after the handover, of which 75% will be held for the JUP DAO (yes, we eat our own dogfood)
- 0.55B will be in the team hot wallet for any liquidity needs throughout the next few years.
- 0.5B will be in the community hot wallet, for both community initiatives and DAO ownership
Any tokens leaving hot wallets will be communicated ahead of time.
The easiest way to understand circulating supply is basically what is NOT in these 4 wallets.
All cold and hot wallets are listed extremely clearly in the forum post linked above, so every single token going in and out can be scrutinized and questioned.
Again, we took massive amounts of care to make sure that every single step of the minting and token transfers into the cold wallets are clear accounted for.
We expect Jupiter to be around for decades, and we believe that consistent token distributions are an incredibly powerful way to rally community, however it’s also incredibly distracting for the team and potentially poisoning the community, because we want people to use the product because they love it and not because of points.
Therefore to respect both those dynamics, we propose to do a Jupuary 31 every year without fail where a significant portion of tokens will be distributed to users, with the cutoff on Nov 2, with a solid 3 months focused on engaging the community, executing on major initiatives - and the rest of the 9 months focused exclusively on product and platform growth.
Even though the token mint authority has been burnt in order to guarantee the validity of the current mint, there will be a transition to an inflationary token when the set of tokens run out, and the DAO is sufficiently mature and robust to manage that power.
Last but not least, we believe that all monies are memes.
Gold is a meme
Bitcoin is a meme
JUP aspires to be as great a meme as these OG memes