Following the approval of the first supply reduction proposal,the current JUP token distribution is as follows:
- Community (3.5 billion)
- Circulating portion: 1st Jupuary + 2nd Jupuary + Community DAO = 1 + 0.7 + 0.1 = 1.8 billion
- Non-circulating portion: 3rd Jupuary + Community Reserve = 0.7 + 1 = 1.7 billion
- Team (3.5 billion)
- Circulating portion: Team allocation + JUP (Launch Pool + MM) + 280 million incentives = 1.86 billion
- Non-circulating portion: Team Reserve = 3.5 - 1.86 + buyback = at least 1.64 billion
The above data is sourced from the second token audit.
Based on this data, the proposal is to burn 1 billion tokens each from the community reserve and the team reserve, reducing the total JUP supply to 5 billion. The burning ceremony will take place during the second Catstanbul Conference in 2026. After the burning and the 3rd Jupuary event are completed, the community’s share of JUP will be fully released, with no further unlocking pressure. The team reserve will retain 640 million tokens, and with a two-year buyback program, the team reserve is expected to hold approximately 1 billion JUP by the end of 2026 for strategic project development (if supply and demand are insufficient, the team may extend the buyback period).
Given that this proposal involves the complete destruction of the community reserve, it is expected to generate significant controversy within the community. Therefore, this proposal requires a voting approval rate of over 80% to pass and be implemented.
If the proposal is approved, it will further address concerns about high FDV (fully diluted valuation), increase confidence and certainty for JUP token holders and the community, and attract more users to hold JUP and join the JUP community.