Proposal: Decentralize Web3 Infrastructure & Earn Real Yield: The New JUP Validator Strategy
JUP Validator Strategy + Web3 Services Ecosystem
Hello, Jupiter community, Jupiter Team & DAO,
I would like to submit this initial draft proposal for your consideration, aimed at both the community and the Jupiter core team.
This is an initial version and is fully open to feedback and improvements.
Introducing the JUP Network Validator System
This proposal is designed not only to strengthen the JUP ecosystem’s infrastructure but also to create a sustainable revenue and growth model for all stakeholders, from the core team to the community of stakers.
Jupiter is widely recognized for:
- Its leadership in DeFi innovation on Solana
- A strong commitment to building tools that empower the community
- The decentralization of power across its ecosystem
The Jupiter DAO serves as the guardian of this visionary, community-first spirit, consistently demonstrating its ability to support transformative initiatives.
This project is part of a broader strategic initiative to enhance the Jupiter ecosystem’s infrastructure and adoption channels, ensuring long-term sustainability and value creation. It is directly connected to the DAO Proposal: XJup: The Next-Gen Web3 Payment and Rewards project detailed in the attached document.
This is a first version, fully open to feedback and improvement.
Project Goals
With the JUP Network Validator System, we aim to:
- Achieve greater control and security over transactions
- Provide sustainable yield generation for JUP stakers
- Strengthen decentralization and empower community governance
- Expand the JUP ecosystem with robust Web3 infrastructure services
Our Vision
This is just the starting point. We believe that the true power of the JUP Network Validator System will emerge from:
- Continuous collaboration with the Jupiter team
- Shared decision-making with the DAO
- A commitment to transparency, accountability, and ambition
We count on everyone’s:
- Support
- Feedback
- Strategic vision
… to help transform this early-stage idea into a long-term pillar of the Jupiter ecosystem.
We are ready to listen, adapt, and build this future together.
JUP Operates a Network of High-Performance Validators
-
Launch a dedicated network of JUP-branded validators on Solana (initial phase), with a roadmap to expand across other key blockchain networks !
-
Flexible commission model (0%–5%), strategically defined:
- 0% commission → attract delegators, build trust, and strengthen community engagement.
- Low commission (1–5%) → generate sustainable validator rewards that flow into the JUP treasury, supporting ecosystem development.
Key Benefits:
- Revenue generation: Earn transaction fees and staking rewards to fuel long-term growth.
- Brand strength: Elevate JUP’s visibility, reputation, and credibility across the Solana ecosystem and beyond.
- Community power: Enable open delegation from the JUP community, reinforcing decentralization, DAO governance, and trust.
- Ecosystem foundation: Create a robust infrastructure that supports additional Web3 services, setting the stage for innovation and expansion.
Project Timeline by Phase (with KPIs, Team Growth & Risk Focus)
Phase -1 (Before Month 1): Preparation & Team Setup
→ Founders, Leadership, Recruitment, Legal, Finance
- Define project vision and validator strategy; secure DAO/Jupiter approval; assemble core team (blockchain architect, backend, devops, product, marketing, compliance, business development)
- Set up legal, treasury, and financial structures; engage infrastructure and security partners; draft technical and governance specs
- KPI: Core team hired; legal and technical framework completed
- Risk focus: Talent hiring delays, DAO governance bottlenecks → mitigated through early advisor and DAO team involvement
• Phase 0 (Month 1): Setup
→ DevOps, Blockchain Architect, Compliance
- Set up validator infrastructure (nodes, monitoring tools); define decentralization and staking architecture; map regulatory/KYC/AML needs
- KPI: Validators operational in testnet; compliance strategy approved
Regulatory Risk Mitigation Plan
To ensure long-term resilience of the JUP Validator Network, a proactive regulatory strategy will be implemented:
- Continuous monitoring: Ongoing assessment of global regulatory frameworks via legal and compliance partners.
- Modular compliance architecture: Flexible policies for rapid adaptation of KYC/AML requirements and reporting obligations.
- Geographic diversification: Validator nodes distributed across multiple jurisdictions to mitigate single-region risks.
- Contingency planning: Predefined response steps to pause, relocate, or modify services when facing regulatory changes.
- Transparent communication: Regular updates shared with the community and DAO to maintain trust.
Risk focus:
- Compliance delays or evolving legal landscapes → mitigated via early expert involvement and continuous review.
Phase 1 (Months 2–4): MVP Launch
→ Backend, DevOps, Validator Operators, Product, Compliance, Marketing
- Develop core validator management system; integrate staking flows; implement monitoring dashboards; conduct initial testing; launch marketing campaigns
- KPI: Mainnet validators operational; first delegators onboarded; treasury commission model defined
- Team growth: Expand backend, validator operations, and marketing teams
- Risk focus: Technical deployment delays, decentralization challenges → mitigated through agile sprints and progressive rollout
Phase 2 (Months 5–8): Ecosystem Integration
→ Backend, Product, Business Development, Marketing
- Integrate with Solana tools; enable cross-chain expansion; formalize partnerships; optimize performance and security
- KPI: Validator network reaching target staking volume; 2–3 key partnerships signed
- Team growth: Add business development, expand marketing team
- Risk focus: Integration risks, ecosystem fragmentation → mitigated via modular architecture and close collaboration with Solana teams
Global Marketing Plan
The success of the JUP validator network relies not only on robust infrastructure but also on a well-executed global marketing strategy. Below are the pillars that will guide the international growth of the project.
1. Identification of Priority Markets
- Initial focus on North America, Europe, and Asia, where crypto adoption and the Solana ecosystem already have a strong presence
- Explore Latin America and Africa as emerging markets, leveraging opportunities for financial inclusion and growing interest in staking
2. Strategic Partnerships
- Establish collaborations with crypto influencers, launchpads, DEXs, and DeFi communities to boost visibility
- Form partnerships with digital wallets (Phantom, Solflare) and staking platforms to offer native integration and joint promotions
3. Multichannel Campaigns
- Execute coordinated campaigns across:
o Social media (Twitter/X, Discord, Telegram, Reddit)
o Crypto portals (CoinGecko, CoinMarketCap, Decrypt)
o Paid media (Google Ads, exchange ads, banners on DeFi aggregators) - Use educational content (blog posts, videos, podcasts) to explain the benefits of JUP staking and network differentiators
4. Incentives and Reward Programs
- Launch staking campaigns with bonuses for early users and delegators
- Offer exclusive airdrops for active participants and holders
- Create gamified leaderboards and rankings with monthly or quarterly rewards
5. Metrics and KPIs for Evaluation
- Track:
o Customer Acquisition Cost (CAC)
o Total Value Locked (TVL)
o Number of delegators and validators
o Social media engagement
o Campaign conversion rates - Adjust the strategy based on data, using agile methods to continuously improve performance
6. Ambassador and Community Program
- Create a global JUP Ambassador Program, incentivizing local leaders to expand the community
- Organize meetups, webinars, and hackathons to engage developers and early adopters
Expected Outcome
With these pillars, JUP’s global marketing will not only increase visibility and validator network adoption but also build an engaged community, strengthening the project’s sustainability and leadership in the Web3 ecosystem
Phase 3 (Months 9–12): Public Scaling
→ Product, Marketing, Business Development, Compliance
- Expand to other chains; scale delegation; publish DAO reports; run governance votes
- KPI: Multi-chain validators live; community delegation grows; DAO approves next budget
- Team growth: Reinforce marketing, compliance, business development
- Risk focus: Scaling challenges, community trust → mitigated through transparency, metrics, DAO participation
Phase 4 (Months 13–24): Optimization & Expansion
→ All teams
- Optimize infrastructure; automate rewards; pursue new validator markets; align governance
- KPI: >99% uptime; optimized costs; new revenue channels
- Team growth: Adjust for scaling; potentially add regional validators and governance managers
- Risk focus: Sustainability risks, governance fragmentation → mitigated through feedback loops and treasury risk management
Phase Timeline
| Phase | Duration | Main Objectives | Key Team Members Involved |
|---|---|---|---|
| Phase 1 — Initial (Setup & Planning) | 1–2 months | Strategic planning, infrastructure setup, KPI definition, initial security audit | Project Director, Blockchain Architect, DevOps Engineer (1), Security Engineer, Compliance Advisor |
| Phase 2 — Development | 3–12 months | Backend development, Solana integration, validator setup, UX/UI design, initial marketing campaigns | Backend Developer, DevOps Engineer (2), Validator Operator, Product Manager, UI/UX Designer, Web3 Marketer |
| Phase 3 — Testing & Audit | 10–12 months (parallel) | Performance testing, security validation, internal audits, compliance review | DevOps Engineer, Security Engineer, Compliance Advisor, Blockchain Architect |
| Phase 4 — Public Launch (Go-Live) | 12–13 months | Official launch, delegation campaigns, customer support, intensive monitoring | Project Director, Web3 Marketer, Business Developer, Validator Operator |
| Phase 5 — Monitoring & Expansion | 14–24 months | Expansion to other chains, operational optimization, DAO reporting, strategic partnerships, improvements | Project Director, Business Developer, Web3 Marketer, Product Manager, DevOps Engineer, Validator Operator |
Cost Structure & Team Roles
Core Team (~€673K):
- Backend & Frontend Developers: Build and maintain validator interfaces and integrations.
- DevOps & Infrastructure Team: Manage validator deployment, monitoring, and scaling.
- Compliance & Security Advisors: Ensure adherence to legal frameworks and protect infrastructure.
- Marketing & Business Development: Drive adoption and partnerships.
Infrastructure & Ops (~€360K):
- Continuous validator operation, monitoring, and uptime optimization.
Other allocations:
- Marketing & Community (~€80K)
- Legal & Security Audits (~€100K)
- Contingency Reserve (~€67K)
Project Timeline by Phase (with KPIs, Team Growth & Risk Focus) — Infrastructure
Phase -1 (Before Month 1): Preparation & Team Setup
→ Infrastructure Project Manager, DevOps Lead, Validator Operator Lead, Security Advisor, Procurement, Legal
- Define infrastructure strategy and roadmap
- Select cloud/hardware vendors, finalize technical architecture
- Recruit core infra team (DevOps, Validator Operators, Security, Network Engineers)
- Draft security, network, and backup policies
- KPI: Core infra team hired; vendor contracts signed; architecture plan approved
- Team growth: Hire 3–4 key senior roles
- Risk focus: Hiring delays, vendor negotiation risks → mitigated by early advisor/partner engagement
Phase 0 (Months 1–2): Setup
→ DevOps, Validator Operator, Security, Compliance
- Deploy validator testnet, configure monitoring tools, set up security protocols
- Map regulatory/KYC/AML requirements for infra
- Begin internal training on validator operations
- KPI: Testnet live, security and monitoring systems in place, compliance plan approved
- Team growth: Add DevOps, Security Engineer, Validator Operator
- Risk focus: Technical configuration delays → mitigated by using automation and templates
Phase 1 (Months 3–12): Mainnet Build-out
→ DevOps, Validator Operators, System Admin, Network Engineer, Product Manager
- Deploy mainnet validators, optimize performance, automate updates and backups
- Integrate advanced monitoring and alerting systems
- Prepare for community delegation onboarding
- KPI: Mainnet validators operational; uptime ≥99%; monitoring dashboards live
- Team growth: Expand DevOps, hire System Admin, add Monitoring Specialist
- Risk focus: Network or system instability → mitigated by redundancy, multi-region deployment
Phase 2 (Months 10–12, parallel): Testing & Audit
→ Security Engineer, Compliance Advisor, DevOps, Validator Operators
- Conduct performance stress tests and audits
- Review compliance and legal readiness
- Optimize validator commission settings and operational costs
- KPI: Passed external audits; compliance greenlight; cost model validated
- Team growth: Expand Security and Compliance team as needed
- Risk focus: Audit failures, compliance gaps → mitigated by early preparation and third-party reviews
Phase 3 (Months 12–13): Public Launch (Go-Live)
→ Project Manager, DevOps, Validator Operators, Marketing, Business Development
- Launch validators to public, open delegation, announce partnerships
- Publish public dashboards and status pages
- Provide community support and education
- KPI: Validators live with public delegators; staking volume targets met; public dashboards launched
- Team growth: Add Community Support or Regional Operator roles
- Risk focus: Go-live bugs, community trust → mitigated by staging rollout and early ambassador programs
Phase 4 (Months 14–24): Monitoring, Scaling & Expansion
→ All teams
- Expand validators to other chains, improve automation, reduce costs
- Publish DAO reports and key metrics
- Launch regional validator programs and partnerships
- KPI: Multi-chain validators live; SLA ≥99.9%; cost savings achieved; 2–3 new partnerships secured
- Team growth: Hire regional Validator Operators, expand Business Development
- Risk focus: Scaling bottlenecks, ecosystem fragmentation → mitigated by modular infra, close ecosystem alignment
Infrastructure Phase Timeline (24 Months)
| Phase | Duration | Main Objectives | Key Team Members Involved |
|---|---|---|---|
| Phase -1 — Preparation & Team Setup | Before Month 1 | Define infra strategy, select partners, recruit leads, plan architecture, secure vendors, draft technical specs | Infrastructure Project Manager, DevOps Lead, Validator Operator Lead, Security Engineer, Network Engineer |
| Phase 0 — Initial Setup | Months 1–2 | Deploy validator testnet, configure monitoring tools, establish security protocols, validate initial hardware/cloud setup | DevOps Engineer, Validator Operator, Security Engineer, Network Engineer |
| Phase 1 — Development & Build-out | Months 3–12 | Roll out mainnet validators, optimize performance, scale hardware, automate updates, implement advanced monitoring | DevOps Engineers, Validator Operators, Network Engineer, System Administrator |
| Phase 2 — Testing & Audit | Months 10–12 (parallel) | Conduct security audits, performance benchmarking, stress tests, compliance reviews | Security Engineer, DevOps Engineer, Compliance Advisor, Validator Operator |
| Phase 3 — Public Launch (Go-Live) | Months 12–13 | Go live with validators, enable staking delegation, launch public monitoring dashboards, ensure uptime commitments | Infrastructure Project Manager, DevOps, Validator Operator, Security Engineer |
| Phase 4 — Monitoring & Optimization | Months 14–24 | Expand to other chains, enhance scalability, improve automation, reduce operational costs, manage SLA reporting, onboard regional operators | Project Manager, DevOps Engineers, Validator Operators, System Admin, Network Engineer |
Team Costs and Roles — Infrastructure
| Role | Phase | Months | Base €/month | Total € | Role Description |
|---|---|---|---|---|---|
| DevOps Engineer (Infra) | Initial + Dev | 12 | €5,500 | €66,000 | Builds, deploys, and maintains validator infrastructure, ensures scalability, uptime, and CI/CD pipelines. |
| Validator Operator Lead | Dev + Ops | 12 | €5,500 | €66,000 | Oversees daily validator operations, manages keys, upgrades nodes, monitors performance, ensures SLAs. |
| Security Engineer (Infra) | Initial + Audit | 6 | €6,500 | €39,000 | Implements infrastructure security, sets up key management, runs pen-testing, secures nodes. |
| Network Engineer | Setup + Scaling | 6 | €5,000 | €30,000 | Designs network topology, optimizes connectivity, manages latency, handles DDoS mitigation. |
| System Administrator | Maintenance | 12 | €4,500 | €54,000 | Manages server updates, monitors logs, handles backups and recovery plans. |
| Monitoring Specialist | Dev + Ops | 6 | €4,000 | €24,000 | Sets up and monitors performance dashboards, alert systems, health checks, and reporting tools. |
| Infrastructure Project Manager | All Phases | 12 | €6,750 | €81,000 | Coordinates all infra teams, timelines, vendor management, and ensures infra milestones are delivered. |
Total (Infrastructure Team Costs): €360,000
Infrastructure Roadmap with Key Team Roles
| Phase | Months | Key Focus | Core Roles Involved |
|---|---|---|---|
| Preparation & Setup | M0–M1 | Define infra strategy, recruit leads, draft technical specs, plan architecture, secure vendors | Infrastructure Project Manager, DevOps, Security Engineer, Network Engineer |
| Initial Setup | M2–M3 | Deploy testnet, configure monitoring, establish security protocols, validate hardware setup | DevOps Engineer, Validator Operator, Security Engineer, Network Engineer |
| Development & Build-out | M4–M10 | Roll out mainnet validators, optimize performance, scale hardware, automate updates, implement monitoring tools | DevOps Engineers, Validator Operators, System Administrator, Network Engineer |
| Testing & Audit | M8–M10 | Conduct security audits, stress tests, compliance reviews | Security Engineer, DevOps, Compliance Advisor, Validator Operator |
| Public Launch (Go-Live) | M11–M12 | Enable staking delegation, launch public monitoring dashboards, ensure uptime commitments | Infrastructure Project Manager, DevOps, Validator Operator, Security Engineer |
| Monitoring & Optimization | M13–M24 | Expand to other chains, enhance scalability, reduce operational costs, improve reporting | Project Manager, DevOps Engineers, Validator Operators, System Admin, Network Engineer |
Average Monthly Costs (AWS on-demand)
| Region | Validators | Total Servers | EC2 | Storage | Monitoring | Estimated Monthly Total |
|---|---|---|---|---|---|---|
| North America | 2 | 4 | US$ 800 | US$ 600 | US$ 120 | US$ 1,520 |
| South America | 1 | 2 | US$ 400 | US$ 300 | US$ 60 | US$ 760 |
| Europe | 2 + 2 principal | 6 | US$ 1,200 | US$ 900 | US$ 180 | US$ 2,280 |
| Asia | 2 | 4 | US$ 800 | US$ 600 | US$ 120 | US$ 1,520 |
| Oceania | 1 | 2 | US$ 400 | US$ 300 | US$ 60 | US$ 760 |
| Extra (bare metal) | 2 | 4 | ~US$ 600 | included | included | ~US$ 600 |
Infrastructure Costs: €180.000
Comparative Table: AWS vs Hetzner (Bare Metal)
| Item | AWS (cloud) | Hetzner (bare metal) |
|---|---|---|
| CPU | 8 vCPU (m6i.2xlarge) | AMD Ryzen 9 / Intel i9, 8 cores, 16 threads |
| RAM | 32 GB DDR4 ECC | 32–64 GB DDR4 ECC |
| Storage | EBS gp3/io1 SSD, 500 GB + 1 TB, ~5000–10000 IOPS | 2 x NVMe SSD (500 GB + 1 TB), RAID-1 or RAID-0 |
| Network | 1–10 Gbps ENI, elastic IP | 1 Gbps (up to 10 Gbps internal, limited external) |
| Backup/Snapshot | Included (paid separately by usage) | Optional, paid separately |
| Automatic failover | Yes (multi-AZ) | No (manual setup required) |
| Monthly price (on-demand) | ~US$ 500–600 | ~US$ 120–150 |
| Monthly price (reserved 1–3 years) | ~US$ 300–400 | Not applicable (fixed bare metal price) |
| SLA uptime | ≥99.99% AWS SLA | ~99.90% Hetzner SLA |
| Technical support | Included in enterprise plan (extra cost), basic via console | Basic (ticket/email), optional premium |
| Hardware management | Managed by AWS | Managed by Hetzner (less transparent) |
Distribution for 10 Validators + Coordinators (Initial Network)
| Continent | AWS Region | # of Logical Validators | Redundant Servers (1 active + 1 backup) |
|---|---|---|---|
| North America | us-east-1, us-west-2 | 2 | 4 |
| South America | sa-east-1 | 1 | 2 |
| Europe | eu-west-1, eu-central-1 | 2 | 4 |
| Asia | ap-northeast-1, ap-southeast-1 | 2 | 4 |
| Oceania | ap-southeast-2 | 1 | 2 |
| Extra (mixed redundancy) | other provider / bare metal | 2 | 4 |
| Coordinators | eu-west-1, us-east-1 | 1 active + 1 backup | 2 |
Total physical servers: 22
Infrastructure Overview
We propose a globally distributed validator network to ensure high availability, security, and decentralization:
- Validators deployed across North America, South America, Europe, Asia, and Oceania.
- Each region features redundancy (active + backup) to guarantee >99% uptime.
- Mixed infrastructure: cloud + bare metal servers to diversify provider risk.
This architecture ensures resilience, performance, and compliance with decentralization principles without over-relying on any single provider.
Summary
-
22 total servers = 20 redundant validators + 2 redundant coordinators
- Redundant, multi-continent architecture ensures uptime, decentralization, and resilience.
- Coordinator nodes guarantee orchestration and synchronization stability.
- This design balances performance, decentralization, and operational security, key principles for a robust blockchain network.
Project Funding Clarification
The total project cost of €673,425 primarily covers the core team, including backend, frontend, mobile development, product management, marketing, compliance, and business development over the 24-month roadmap.
The full investment request of €1.46 million includes these core costs plus additional critical expenses — such as infrastructure and operations (cloud services, servers, data storage, hardware), the infrastructure team (sysadmins, cloud engineers, validator operators, security specialists), marketing initiatives, legal and regulatory requirements, contingency reserves, and external security audits (€50,000).
While this funding structure provides a robust initial foundation, the team acknowledges that additional capital may be required as the project scales, particularly in areas such as infrastructure expansion, security reinforcement, customer support, and compliance with evolving regulatory frameworks. A proactive fundraising and risk management strategy will be implemented to ensure financial resilience and the flexibility to address unforeseen demands as the project grows.
JUP Distribution and Vesting Overview
- Cliff: 6 months for all team members, starting from the date their tokens are allocated (since not all team members join at the same time)
- Linear Unlock: proportional monthly unlocking after the cliff period
Example:
Backend Developer → 180,000 JUP total, 7,500/month, 22,500/quarter
This means the Backend Developer will unlock 7,500 JUP per month after the 6-month cliff, adding up to 22,500 JUP per quarter, until completing the 24-month vesting period.
The total amount of JUP tokens allocated to each team member will be deposited into the smart contract immediately upon the team member’s official onboarding/start date.
These tokens will remain fully locked under the 6-month cliff and linear unlock schedule, and are subject to the Early Exit Rule.
This approach ensures full transparency, alignment with the vesting plan, and builds confidence for both the team and investors.
Early Exit Rule:
- If a team member leaves before the cliff, they forfeit all allocated tokens.
- If they leave after the cliff, they retain tokens vested up to that point; unvested tokens are returned to the project pool.
JUP Allocation Summary — Team
| # | Role | Months | Calculation | Total JUP Allocated |
|---|---|---|---|---|
| 1 | Backend Developer | 12 | 12 × 15,000 | 180,000 |
| 2 | React Native Developer | 12 | 12 × 15,000 | 180,000 |
| 3 | DevOps Engineer | 3 | 3 × 15,000 | 45,000 |
| 4 | UI/UX Designer | 3 | 3 × 15,000 | 45,000 |
| 5 | Product Manager | 23 | 23 × 15,000 | 345,000 |
| 6 | Compliance Advisor | 3 | 3 × 15,000 | 45,000 |
| 7 | Web3 Marketer | 23 | 23 × 15,000 | 345,000 |
| 8 | Business Developer | 23 | 23 × 15,000 | 345,000 |
| 9 | Project Director | 24 | 24 × 15,000 | 360,000 |
JUP Allocation Summary — Infrastructure Team
| Role | Months | Calculation | Total JUP Allocated |
|---|---|---|---|
| DevOps Engineer (Infra) | 12 | 12 × 15,000 | 180,000 |
| Validator Operator Lead | 12 | 12 × 15,000 | 180,000 |
| Security Engineer (Infra) | 6 | 6 × 15,000 | 90,000 |
| Network Engineer | 6 | 6 × 15,000 | 90,000 |
| System Administrator | 12 | 12 × 15,000 | 180,000 |
| Monitoring Specialist | 6 | 6 × 15,000 | 90,000 |
| Infrastructure Project Manager | 12 | 12 × 15,000 | 180,000 |
Team Token Rewards & Vesting Timeline
| Role | Total JUP | Cliff (months) | Post-Cliff (months) | Monthly Unlock | Notes |
|---|---|---|---|---|---|
| Backend Developer | 360,000 | 6 | 24 | 15,000 | Full 24-month unlock |
| React Native Developer | 360,000 | 6 | 24 | 15,000 | Full 24-month unlock |
| DevOps Engineer (1) | 15,000 | 6 | 1 | 15,000 | 1-month role, unlocks fully after cliff |
| DevOps Engineer (2) | 30,000 | 6 | 2 | 15,000 | 2-month role |
| UI/UX Designer (1) | 15,000 | 6 | 1 | 15,000 | 1-month role |
| UI/UX Designer (2) | 30,000 | 6 | 2 | 15,000 | 2-month role |
| Product Manager (1) | 180,000 | 6 | 12 | 15,000 | 12-month role |
| Product Manager (2) | 165,000 | 6 | 11 | 15,000 | 11-month role |
| Compliance Advisor (1) | 15,000 | 6 | 1 | 15,000 | 1-month role |
| Compliance Advisor (2) | 30,000 | 6 | 2 | 15,000 | 2-month role |
| Web3 Marketer (1) | 180,000 | 6 | 12 | 15,000 | 12-month role |
| Web3 Marketer (2) | 165,000 | 6 | 11 | 15,000 | 11-month role |
| Business Developer (1) | 180,000 | 6 | 12 | 15,000 | 12-month role |
| Business Developer (2) | 165,000 | 6 | 11 | 15,000 | 11-month role |
| Project Director | 360,000 | 6 | 24 | 15,000 | Full 24-month unlock |
Importance of Integrating DEV and Infrastructure Teams
For the successful delivery of the JUP Validator Network project, the combined efforts of both the DEV team and the Infrastructure team are critical.
The DEV team is responsible for building the product, delivering a seamless user experience, integrating blockchain services, driving go-to-market strategy, and engaging users and partners. Without this layer, the ecosystem would lack the tools, applications, and market positioning needed to scale.
The Infrastructure team is responsible for ensuring the validator network is secure, scalable, and resilient. They manage the technical backbone — including validator deployment, system administration, network architecture, monitoring, and security — which ensures the product operates on a reliable and decentralized foundation.
Together, these teams create a complete, sustainable ecosystem that combines innovation on the product side with operational excellence on the infrastructure side.
Challenge of Integrating DEV and Infrastructure Teams
The proposal rightly acknowledges the interdependence between the development (DEV) and infrastructure teams, but it currently lacks a clear operational framework for coordinating their deliverables.
To improve alignment and ensure smooth execution, it is highly recommended to define a detailed operational plan that includes shared milestones, cross-team dependencies, and regular coordination checkpoints. Establishing a dedicated integration lead or project manager who oversees both tracks could also help minimize communication gaps and keep timelines on track.
Combined Roles Overview
| Function | DEV Team | Infrastructure Team |
|---|---|---|
| Product Development | Backend Dev, React Native Dev, UI/UX | — |
| Compliance & Regulation | Compliance Advisors | Security Engineer (infra audits, node security) |
| Product Management & Coordination | Product Managers, Project Director | Infrastructure Project Manager |
| Marketing & Community Growth | Web3 Marketers, Business Developers | — |
| Validator Operations & Management | — | Validator Operator Lead, DevOps Engineer (Infra) |
| Infrastructure Security | — | Security Engineer, Network Engineer |
| System Administration & Maintenance | — | System Administrator, Monitoring Specialist |
| Network Monitoring & Performance | — | Monitoring Specialist, Infrastructure Project Manager |
Yield Strategy for Long-Term Stakers
Overview / Vision
This project aims to unlock new yield opportunities for long-term JUP stakers without sacrificing their staking benefits.
We propose two complementary strategies to achieve this goal:
Scenario 1:
SOL Borrowing with Staked JUP as Collateral
By allowing users to borrow SOL against their staked JUP, we enable them to access liquidity and generate additional yield without un-staking or losing access to ASR rewards. This creates new capital efficiency for JUP holders and unlocks participation in validator staking, DeFi strategies, or liquidity provision, while preserving their long-term alignment with the JUP ecosystem.
JUP stakers earn ASR and governance rights but face a 30-day lockup, making their tokens illiquid.
Proposed solution:
- Allow borrowing of SOL using staked JUP as collateral,
- Enable users to participate in validator staking, DeFi strategies, or liquidity provision,
- Keep ASR rewards and governance rights intact.
Why this matters:
- Increases capital efficiency for JUP holders;
- Adds a new lending market and revenue stream to the ecosystem;
- Strengthens Jupiter’s long-term sustainability.
Vision:
Build a secure, integrated borrowing system in collaboration with the Jupiter team, driving liquidity, user engagement, and protocol growth.
SOL Borrowing with Staked JUP as Collateral
The basic idea:
→ The user has 1,000 JUP staked → they are earning ASR and other benefits, but the tokens are locked (cannot be sold or used directly for 30 days).
→ We offer this user the possibility to borrow SOL, using their staked JUP as collateral.
→ They can then use the borrowed SOL to stake with Jupiter validators.
→ In short, we would create a money market specifically for staked JUP tokens.
Technical Challenges and Requirements
On-chain validation of JUP stake
→ We will need to ensure that the user actually has X JUP staked.
→ This will likely depend on a staking contract that allows public read access or integration with Jupiter.
Locking and custody of JUP stake
- Either the stake remains under custody of the Jupiter protocol;
- Or you create a contract that accepts JUP, stakes it, and issues a “proof token” to serve as collateral.
Issuing the loan (SOL)
- We will need a SOL liquidity pool.
- When the user deposits staked JUP, they borrow SOL from the pool.
- Ideally, this loan has a cap (e.g., 50% Loan-to-Value — LTV), since JUP is volatile.
Risk management
Since JUP’s price can drop, you will need:
- Reliable price oracles (e.g., Pyth, Switchboard);
- A liquidation mechanism if the collateral value drops below the threshold.
Partnership with Jupiter
Without support from the Jupiter team, we can’t touch their staking system.
But with their collaboration, we could:
- Create contracts that recognize JUP stake as collateral;
- Allow native integration inside their app.
Basic User Flow
- User accesses the dApp → connects wallet.
- The dApp reads their JUP stake on-chain → displays available loan limit.
- User requests a loan → receives, for example, 300 SOL backed by 1,000 staked JUP.
- User uses SOL to stake with validators.
- When they want to repay, they return SOL + interest → their staked JUP is unlocked.
Points of Attention
- If JUP drops sharply in price → automatic liquidation.
- If JUP staking yield is lower than the SOL borrowing cost → the model may be unattractive.
- We must ensure a simple UX: native wallet integration, and Jupiter app compatibility.
Scenario 2:
DAO-Backed SOL Staking to Bootstrap the Protocol
The Jupiter DAO will allocate treasury funds to acquire and stake SOL directly, generating a foundational revenue stream for the protocol. This bootstrap phase ensures financial stability over the first 24 months while user adoption scales up. To accelerate growth, the protocol will offer targeted user incentives, such as bonus JUP rewards, fee discounts, and governance boosts, for staking through Jupiter validators, creating a powerful flywheel that strengthens the ecosystem.
DAO-Backed SOL Staking Strategy (Bootstrap Phase)
We propose that the Jupiter DAO deploy a portion of its treasury to acquire and stake SOL, creating a foundational revenue stream that supports the validator ecosystem and lending protocol over the critical first 24 months. This bootstrap approach helps stabilize the system until it reaches self-sustainability through user participation.
Assumptions and Detailed Calculations
Initial DAO Capital Deployment
- DAO treasury allocation: 3,000,000 USDC
- Current SOL market price: 140 USDC/SOL
- Amount of SOL acquired: 3,000,000 ÷ 140 ≈ 21,428 SOL
Expected SOL Staking Yield
- Average staking yield on SOL: ~5% APY
- Annual staking rewards from DAO stake: 21,428 SOL × 5% ≈ 1,071 SOL/year
- Total rewards over 24 months: 1,071 × 2 ≈ 2,142 SOL
- Dollar value of rewards (assuming constant SOL price):* 2,142 SOL × 140 ≈ 299,880 USDC
Expected Impact of User Participation
- Example:* 70,000 SOL staked by users over 24 months
- Annual rewards: 70,000 × 5% ≈ 3,500 SOL/year
- 24-month rewards: 3,500 × 2 ≈ 7,000 SOL
- Value at $140/SOL: 7,000 × 140 ≈ 980,000 USDC
Combined potential staking rewards (DAO + users):
- DAO rewards: ≈299,880 USDC
- User rewards: ≈980,000 USDC
- Total potential revenue: ≈1,279,880 USDC over 24 months
User Incentives for Staking with Jupiter Validators
To accelerate adoption and increase the share of SOL delegated to Jupiter validators, we recommend implementing targeted user incentives:
- Bonus rewards in JUP or additional SOL for early stakers (first 6–12 months).
- Reduced loan fees or priority access in the borrowing protocol for users staking through Jupiter validators.
- Exclusive airdrops tied to staked SOL amounts.
- Gamified milestones or leaderboard rewards (e.g., top stakers each quarter get bonuses).
These incentives will create a strong flywheel effect:
- More users staking → more protocol rewards → more funds for incentives → stronger ecosystem → faster sustainability.*
Incentive Model Needs Refinement
The proposed incentive strategies, including airdrops, discounts, and staking bonuses, are attractive and can drive early adoption. However, they require careful calibration to avoid unintended consequences:
- Incentives should be structured to maximize user engagement without cannibalizing the protocol’s long-term revenue streams.
- Clear eligibility rules and safeguards must be put in place to prevent abuse, such as sybil attacks or reward farming by malicious actors.
- Regular monitoring and adjustment of incentive programs, based on data and community feedback, will be key to maintaining a balanced and sustainable reward system.
Sustainability Evaluation
- DAO alone:
~300,000 USDC over 24 months → helpful but insufficient by itself. - DAO + user participation + incentives:
~1.28M USDC → offers a credible path to self-sustainability, especially if incentives successfully drive early user adoption.
Key Risks and Considerations
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SOL price volatility → Reward values can drop if SOL falls.
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Impact of SOL Volatility → The project’s economic model is heavily reliant on the staking yield of SOL, which introduces significant exposure to price volatility. A substantial decline in SOL’s value could threaten the long-term sustainability of the validator network and the protocol’s revenue streams. To mitigate this risk, the team should consider:
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Establishing a hedge reserve or risk buffer in stablecoins or other assets to provide financial stability during market downturns.
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Exploring a multi-asset staking model in the future, which would diversify revenue sources and reduce dependence on a single asset class.
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Continuously monitoring market conditions and adjusting treasury management strategies accordingly to safeguard the project’s financial health.
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User adoption risk → Incentives must be well-designed to drive real, sticky participation.
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Governance strategy → Clear rules on how DAO and protocol revenues are reinvested or distributed.
Strategic Recommendations
- Use DAO staking as a bootstrap phase.
- Deploy early user incentives to accelerate SOL inflows.
- Set clear user growth milestones and adjust incentives dynamically.
- Build a transparent reinvestment plan for long-term sustainability.
Overview of the Yield Strategy for Long-Term Stakers
The Yield Strategy for Long-Term Stakers is designed to reward loyalty, improve capital efficiency, and strengthen the JUP ecosystem. It enables stakers to earn passive rewards, access liquidity, and actively participate in network growth, all while maintaining ASR benefits and governance rights “Scenario1”.
Key pillars include:
- Validator Rewards: Transaction fee sharing and performance bonuses to ensure a secure, reliable validator network.
- Yield Pool: A portion of network fees is distributed to JUP stakers, with part reinvested to support operations.
- Descentralized Governance: Stake-based voting and smart contracts ensure transparent, fair reward distribution.
- Reinvestment: Yield is used to expand infrastructure and fund innovation, driving long-term ecosystem growth.
This strategy builds a resilient, decentralized, and rewarding ecosystem for all participants.
Connect Products to the Validator Ecosystem
To strengthen the JUP ecosystem and create a sustainable circular economy, it’s essential to tightly link JUP’s Web3 products with its validator network. This strategy ensures that ecosystem growth directly supports validator operations, staking demand, and long-term protocol governance.
Core Ideas
Launch JUP Web3 Infrastructure Products
Develop a suite of Web3 tools that attract developers, projects, and enterprises to the JUP ecosystem, including:
- RPC and indexer services
- Token and NFT metadata APIs
- Real-time Solana analytics dashboards
- Webhook infrastructure for on-chain event monitoring
Offer a free tier to onboard developers and paid tiers to generate revenue for the JUP ecosystem.
Connect Product Usage to the Validator Network
Encourage API clients and product users to stake JUP or delegate SOL to JUP validators by offering:
- Discounts on paid tiers
- Premium product features or faster service
- Governance perks, such as voting rights or access to special proposals
This creates a positive feedback loop: more product usage → more staking → stronger validator network → greater ecosystem value.
Optional Add-ons (Future Phases)
- JUP Developer Grants funded by validator earnings, supporting ecosystem innovation.
- Token-gated dashboards offering advanced analytics or features to JUP stakers.
- DePIN services (Decentralized Physical Infrastructure), such as storage or compute nodes, extending JUP’s reach into real-world infrastructure.
Vision
By deeply integrating Web3 products with the validator ecosystem, JUP creates a unified platform where product adoption, staking, and governance reinforce each other. This approach drives network effects, boosts revenue, and positions JUP as a core infrastructure layer in the Solana and Web3 ecosystems.
Advantages of Jupiter Network Create Its Own Validator Network
Full Control and Decentralization
JUP Network gains full control over its validator infrastructure, enhancing network security, reducing dependency on third parties, and promoting open, transparent governance.
Long-Term Sustainability
By operating its own validator network, JUP can generate stable and predictable yield for stakers in a sustainable, transparent manner, building long-term economic independence without relying on intermediaries.
Community Engagement
Decentralized governance and yield-sharing mechanisms will motivate the community to actively participate in validator selection, governance decisions, and network development, creating a continuous loop of engagement, innovation, and shared success.
Investment Request
We are requesting a strategic investment of €1.46 million and 1.21 million JUP tokens to fund the full 24-month build-out of our validator network and ecosystem infrastructure.
This funding will directly support:
- Core development and infrastructure team execution
- Infrastructure deployment, operations, and scaling
- Marketing, user acquisition, and community initiatives
- Strategic reserves for contingencies and future growth
The proposal includes a clear token vesting plan, a detailed cost structure, and a sustainability-focused roadmap designed to minimize long-term dependence on external capital. With this foundation, the project is positioned to deliver real economic value, generate long-term yield for stakers, and scale a decentralized, high-performance network fully aligned with the mission of the JUP ecosystem.
The team also acknowledges that depending on market conditions, user adoption rates, and technical complexity, additional capital may be required to strengthen infrastructure, enhance security, or expand operations. From the outset, the project will adopt a proactive approach to financial planning and governance to ensure adaptability and resilience.
Investment Breakdown (€1.46M total request)
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Core Team (24 months) → €673,425
Covers backend, frontend, mobile development, product management, marketing, compliance, and business development roles, ensuring the core platform, user experience, and go-to-market strategy are fully resourced. -
Infrastructure & Operations → €150,000
Includes cloud services, servers, data storage, hardware, backup systems, and key security components to guarantee a robust, high-uptime validator network. -
Infrastructure Team & Support → €360,000
Covers the full cost of sysadmins, cloud engineers, validator operators, security engineers, network engineers, monitoring specialists, and project management to maintain, optimize, and scale the infrastructure effectively. -
Marketing & Growth Initiatives → €80,000
Supports user acquisition campaigns, validator network promotion, community engagement, and DAO/influencer collaborations to accelerate ecosystem growth. -
Legal & Regulatory Costs → €50,000
Provides resources for KYC/AML compliance, legal advisory, and international licensing to meet evolving regulatory requirements. -
Security Audits → €50,000
Covers third-party smart contract audits, validator infrastructure security reviews, and penetration testing to protect protocol and user assets. -
Contingency Reserve → €67,000
Set aside for unforeseen expenses, scaling adjustments, or critical emerging needs; designed to maintain flexibility without overcommitting operational budgets.
JUP Token Allocation (Total: ~1.21M JUP)
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Team DEV → 673,000 JUP
Allocated to backend, frontend, mobile, product, marketing, compliance, and business development contributors. -
Team Infrastructure → 360,000 JUP
Dedicated to validator operations, cloud engineers, sysadmins, security experts, and project management roles. -
Infrastructure Budget (Ops) → 180,000 JUP
Supports operational needs, performance incentives, and milestone-based rewards tied to infrastructure performance, scalability, and uptime.
Pre-Seed Breakdown (€250K)
The €250K pre-seed round is designed to build the critical foundation for the JUP infrastructure layer, focusing on stability, scalability, and long-term sustainability. Specifically, this investment will cover:
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Infrastructure Setup:
Deployment of the first wave of validators across key regions, acquisition of high-performance hardware, cloud provisioning, and architecture design to ensure resilience, scalability, and redundancy from day one. -
Technical Development:
Configuration of validator software, implementation of automated monitoring systems, development of uptime dashboards, and integration with the broader JUP ecosystem — ensuring technical excellence and seamless user interaction. -
Security & Audits:
Execution of initial smart contract audits, validator node security reviews, and penetration testing to ensure robustness against attacks and align the infrastructure with the highest industry standards. -
Team Onboarding:
Recruitment and onboarding of core infrastructure talent, including DevOps engineers, system administrators, validator operators, and network architects to ensure deep technical expertise and operational readiness.
Pre-Seed Breakdown (60K JUP)
The 60K JUP pre-seed token allocation is strategically designed to fuel ecosystem growth and activate early participation, ensuring the validator network is not only technically sound but also community-powered:
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Staking Incentives:
Launch of targeted reward campaigns to attract early stakers and delegators, boosting network security and TVL (total value locked) from the start. -
Infrastructure Performance Incentives:
Milestone-based JUP rewards tied to infrastructure team performance metrics such as uptime guarantees, latency targets, and validator reliability. -
Community Validator Campaigns:
JUP-funded community programs to drive awareness, education, and engagement around validator selection, governance participation, and ecosystem contributions. -
Developer Grants:
Provision of micro-grants to developers who contribute essential infrastructure tooling, analytics dashboards, and integrations that improve transparency, usability, and network resilience.
Combined Pre-Seed Strategy
The combined pre-seed request of €250K + 60K JUP provides the financial and ecosystem fuel required to launch a secure, performant, and community-aligned validator network.
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The €250K funding will support:
→ Infrastructure deployment and architecture,
→ Validator software development and ecosystem integration,
→ Security testing and audit processes,
→ Recruitment of top-tier technical talent. -
The 60K JUP allocation will drive:
→ Early staking adoption and liquidity growth,
→ Team performance alignment with operational milestones,
→ Community engagement in governance and validation,
→ Ecosystem expansion through developer participation.
Together, these resources will lay the groundwork for JUP to establish a decentralized, resilient, and scalable infrastructure backbone, setting the stage for long-term growth, revenue generation, and leadership in blockchain infrastructure.
Strategic Summary
The JUP Validator Strategy is a key step in advancing the Jupiter DAO’s vision by building robust infrastructure to ensure long-term ecosystem growth. Through a network of dedicated validators, this project strengthens the DAO’s technical backbone while offering new revenue streams and greater decentralization.
Key impacts:
- Decentralization & Security: Expands the validator network to enhance trust, resilience, and network stability.
- Treasury growth: Generates staking rewards and transaction fees to fund future DAO initiatives.
- Community empowerment: Promotes transparent delegation and deeper DAO governance participation.
- Scalable vision: Lays the foundation for future multichain validation (ETH, AVAX, BNB), boosting Jupiter DAO’s Web3 infrastructure leadership.
This initiative provides a strategic boost to security, scalability, and sustainability, ensuring the DAO evolves into a self-sufficient and resilient ecosystem.
Conclusion
By combining a strong validator network, innovative yield strategies, and deep integration between products and staking, JUP has the opportunity to build one of the most resilient, decentralized, and user-aligned ecosystems in Web3.
This approach not only generates sustainable rewards for stakers but also strengthens the protocol’s security, decentralization, and long-term independence. With transparent governance, smart reinvestment, and meaningful user incentives, JUPITER can set a benchmark for what a next-generation DeFi ecosystem should look like.
Careful, phased scaling, combined with continuous feedback from the community, will ensure that growth remains sustainable, aligned with the mission, and always centered on the long-term interests of JUP token holders.
Final Thought
“Real impact comes from creating real economic value, not just hype. Staking should deliver meaningful returns, product adoption should support the network, and governance should reflect the voice of the community. This is our chance to build something truly sustainable and transformative for the future of DeFi.”
P.S. tagging a few great minds for input: @meow @Kash @0xSoju @9yointern
). In any case, I’ll wait for his response.
