Since I have attended the Friday J.U.P. Rally (08th Nov) and Saturday Town Hall on Discord (9th Nov), I would like to discuss a little bit about the -75% instant claim for proposal.
In my opinion, although I absolutely get where @meow stands for the whole point and mission for Jupuary 2 to be the gift and invitation for the users of the Platform to continue using it and to encourage new users to onboard through a lot of various gifts that occur through time (ASR for DAO participation, yield from JLP, yield from JupSOL etc) by using Jupiter platform and its products, the percentage that would be taken from users that do not want to lock/vest their tokens (for certain amount of time) at the rate of -75% is simply way too much. Let me explain why I think that.
I would assume that the amount proposed would echo through the space like the core team is afraid of a major selloff instantly after the claim and that there is a fear factor revolving around the price after the drop, which would be really bearish from the perspective of the anon investor. Let me be clear on this, I most definitely do not think that the team is afraid in this or any other sense, but I do think that new users/investors could most definitely see it that way.
My idea would be: if the vesting period has to be there, the amount of tokens that would be cut from the whole airdropped amount that a user got through Jupuary should be cut down to 50% at most. Also, the JUP that would be taken from the instant claim should be redirected back to the community, with another DAO vote that would decide what to do with it. Imo, a lot of those tokens should be redirected to the ASR pool. There is dedicated thread from @Ferdinandoff about the topic here.
Personally, I would like to see no penalty for the instant claim of tokens. Although I definitely think that sell pressure would be there simply by the fact that it is essentially an airdrop, I would bet that LARGE percent of the users would stick to the airdropped amount and that the possible negative price action right after the Jupuary will be diminished really fast, just like it happened at the beginning of 2024. Let me be clear, I am DAO participant since the start (shoutout to cats, the most beautiful animals in the universe) and I am planning to lock out tokens for XY amount of months because I am here for the long run.
I am curious to see what everybody thinks on the topic. And always remember, JUP is home.
I think having the airdrop staked with the DAO and applying a 75% reduction in a good idea and something we also discussed on Jupresearch on different topics (there were different ideas and applications of how it could be done).
The community was discussing more moderate percentages and timeframes (75% and 1 year is quite extreme), but sometimes extreme is effective and I think it would work as a strong holding incentive.
It’s also a great way to introduce people to the DAO and to the ASR which could result in many people continuing to HODL and stake beyond the 1 year period.
This should definitely help avoid concentrated sell pressure, which in turn should help avoid sharp price drops and volatility. The price of any asset drops when sell pressure is greater than buy pressure. Gradual release of tokens is a great way to manage and spread out the sell pressure and contribute to price stability!
Idea for applying gradual token introduction
I do have a meaningful suggestion about the introduction of the tokens (this suggestion is made assuming we would indeed start at 75% reduction for day 1 claim and making it last ~ 1 year before it’s 0% reduction).
My suggestion is to have daily reductions of 0.2% for 375 days (starting at 75% and ending at 0%). Find the proposal here:
I agree, we already saw another big defi protocol undergo the same airdrop strategy in terms of vesting with Sanctum and they were very successful with it. I think by cutting the penalty % down and having the forfeited tokens go back to ASR we can have a fair balance between both sides. We’re gonna have sell side pressure regardless of inducing a penalty or not, and by issuing a penalty we can only delay the inevitable. We already have the first Jupuary with near 2x the supply released, I don’t see why we wouldn’t be able to survive this one.
Interesting point. I appreciate you for your answer.
I could align with the daily release concept being a good idea, but I do not see if the team would go with the more complicated system.
My guess would be that the team will make it preety straightforward in terms of percentage of tokens taken from allocation on the instant claim of the drop and the time it has to be vested/staked in order to get full allocation (i.e. -75% allocation cut and 1 year vesting time for now).
they are going to do a 75% reduction for claiming early because they are afraid of the selloff.
this is why you reward people that aren’t here to dump the token I.E. stakers.
i use raydium daily, meteora daily and plenty of other platforms. Am I calling for them to do a yearly drop? No, because no one expects anything until you mention it.
we don’t need to gain anymore users that is very selfish of the core team because again i have stated we have mostly every user that is actively on solana.
round 2 goes to the ones that will be here for the long haul and not just get free money.
the stakers are not going to dump the token they are here for the long haul ESPECIALLY the ones that have staked 6 months +
This is great discussion and raise some great points.
Whilst I’d love to claim 100% then a there and just stake it, there would obv be people who are on difficult financial positions who would have to sell at least SOME of their jup. And I ain’t gonna sell shame them. Each to their own life, plus we are accumulating more users by the day than we are losing, so the trend should be upwards.
I do feel though there must be some incentive for users to continue staking. I.e. the use of forfeited jup tokens to fund Q1 ASR.
This = more rewards for people = more people would stake ect
This is a research forum. It’s most suited for statements backed by analysis, strong arguments, logic, proof, data backing etc. In the context of Jupresearch these type of messages appear inappropriate. For expressing feelings or opinions without backing, the Discord Community may be a better fit.
I share same thoughts
75% is extreme and can be easily seen as indirectly forcing airdropers to stake.
Make it 40% or 50% reduction applied daily as proposed by @JUPWhale.
Selfish enough to say more stakers are not wanted , especially forced
Less stakers, more asr
Hey SolSixties, thanks for starting the topic. Also, I wanted to tell everyone commenting that I’m appreciating the grounded and frank discussion.
First I’d like to say that I like getting free money. Second, @hunnndini gave me a good idea; Once Jupuary kicks off we should start asking all the other services when they’re having their yearly airdrop! (A few might cave)
I didn’t really think about the -75% because it doesn’t align with the way I do stuff. I actually use $JUP like a currency because it has a good price range, almost every swap or exchange has it, and the volume is solid. But I don’t hold it per-se, because $JUPSOL is my preferred value store. It also seems like the bull market is starting, so I’d rather stay liquid; also a year is a long time.
I like Jupiter and it’s community, though I’m more of a dog guy. I use it more than any other chain, I participate in DAO stuff when I have free time, and I like keeping up with what’s happening; but I’m not a core team type guy.
I say all that because it seems like there’s a little haziness as to the kind of user the Jupuary is meant to attract… Members like me, core team participant types, or some combo of both.
It’s also not clear to me how the current plan attracts new members. Obviously it rewards participants, but I thought the idea was to attract new people.
Unclaimed funds wise; it seems selfish to add it to the ASR and we just had a big burn. How about opening a topic or having a list somewhere for people to throw out ideas; try to come up with something no one else has done that will draw the attention of the of who you’re trying to recruit.
Lastly, it would be nice to have a continuous return being added to the staked amount, instead of BOOM! 75% at the end of the year.
Unclaimed funds can be nominated to a cadet or cat of culture who the dao thinks deserves it. I have many people in mind id love to vote for and think they deserve the world! whats everyones thoughts?
, especially forced