Opt-in Flexibility for ASR Claims: Wallet-directed rewards with a Dynamic Penalty Model

The Active Staking Rewards (ASR) program has been a cornerstone initiative in aligning Jupiter DAO’s long-term vision with meaningful community participation. By incentivizing those who stake, lock, and actively vote, ASR ensures that governance remains not only decentralized but driven by those who are most invested in its outcomes. Currently, upon claiming, these rewards are automatically added to the user’s staked $JUP balance (locking them and increasing the user’s voting power).

However, as the DAO grows and more participants join the governance process, flexibility may be important to them. Several voices from the community (on Discord for example) have raised a practical concern: what if users want to claim their ASR rewards without being restaked automatically? Under the current design, claiming results in immediate staking, and accessing those tokens in a wallet requires a 30-day unstaking period. While this design favors long-term alignment, it lacks options for those who may want or need liquidity without such delay.

To better accommodate diverse user preferences while still protecting the governance mechanism (& avoiding mass selling of ASR rewards), I propose the implementation of a “Flexible Wallet Claim Option”: a toggleable setting during the ASR claiming process that allows users to “bypass” auto-staking in exchange for a reduced reward. This option would offer a fair tradeoff between liquidity and participation incentives.

My suggested model:

Users that choose to claim their ASR rewards directly to their Solana wallet, rather than automatically staking them, may do so under the following conditions (A & B):

  • Option A: Immediate wallet transfer with a 40% penalty applied to the total claimable rewards.

  • Option B: Immediate wallet transfer with a 25% penalty, but with a mandatory 7-day cooldown before funds arrive in the user’s wallet (shorter than the full 30-day unstake).

  • Option C: Claim-and-stake (default), no penalty, full rewards, but subject to standard unstaking rules (30-day delay to transfer to wallet).

This tiered model achieves multiple goals: it preserves the incentive to stake and govern, creates liquidity paths for users with short-term needs, and generates a built-in sink for $JUP supply through penalties, which could optionally be burned or redirected to community grants or development pools.

Ultimately, this proposal is about choice. By offering flexible claiming mechanisms with well-calibrated tradeoffs, JUP can better serve both long-term stakeholders and short-term participants without compromising the integrity of governance. I invite feedback from the community and Jupiter core contributors on the proposed tiers, penalty percentages, and technical feasibility. :raising_hands:

Let’s evolve ASR into something more inclusive and adaptable, while staying true to its original purpose: empowering those who actively vote.

X (Twitter): @tiagoelma

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