As we all know from tuesday’s jup rally that there will be no vesting nor locks for the 700m tokens of jupuary, this is directly going to affect staker’s the most as they will be diluted if the vote passes and not only diluted but price of jup can be seen trading negative after distribution of 700m tokens. Also even if the drop rewards the staker’s with >50% supply that is 350m JUP tokens there is a huge chance that staker’s may just unstake their tokens and try to take profit resulting in heavy sell pressure on JUP. We can safely assume now that Neither the farmer nor the staker’s might want to hold their tokens after such a huge drop, and the market being close to start of bull run it is best not to unlock the 700m tokens instantly. So what is the only way where the price wont fall and tokens can be distributed without locking and vesting. Here is the proposal for it
Instead of giving away JUP tokens for free to farmers and staker’s too, team should adopt the way of J4J again. Stake JUP to get JUP. Voting or not doesn’t matter you stake JUP and earn JUP. The proposal is to distribute 700m tokens over the course of 4 quarter’s next year.
Proposal option 1 - Distribute 175m jup tokens for every quarter. This will not only create hype for jupiter but will also create demand in the market for JUP to buy and to stake because of the APR being too good to miss out. With current rewards of 50m per quarter we got 450m+ jup staked. Imagine what this amount will be when 175m more tokens are added to this pool.
Proposal option 2 - Instead of having 4 equal distribution of 175m jup tokens every quarter, the amount should be doubled every passing quarter.
Q1-70m JUP.
Q2-140m JUP.
Q3-210m JUP.
Q4-280m JUP.
Why should this be done you may ask. This should be done to absorb the selling pressure of JUP tokens coming out at every quarter end. This will encourage staker’s to keep on staking their JUP tokens instead of selling. When 175m tokens are awarded the incentive to hold will decrease every quarter resulting in selling. But with increasing incentives every quarter instead of selling their received JUP people will want to hold and use the JUP received to participate in the DAO again in hope for getting higher incentives creating demand for jup every coming quarter. The incentive to hold jup keeps on increasing when each quarter passes. There might also be a law for this which i might have read years ago when i was in school.
Conclusion being that instead of freely throwing jup to wallets and staker’s, make jup the type of token which forces people to hold and not sell by creating incentives which are too good to miss out.
