Proposal: Utilization of Unclaimed $JUP to Bolster Active Staking Rewards (ASR)

Introduction:
The annual airdrop event, distributing 1 billion $JUP tokens to our community, serves as a recurring, pivotal moment in the J.U.P. journey. However, the fate of unclaimed tokens post-airdrop remains a mystery, and warrants careful consideration. This proposal advocates for utilizing unclaimed tokens to bolster Active Staking Rewards (ASRs) to further incentivize and reward active community participation.

Rationale:

  • Community Commitment: Participation in the DAO requires holding and locking $JUP tokens, reflecting a commitment to the community’s growth and success. By engaging in voting, members demonstrate vested interest beyond mere token possession.

  • Strategic Decision-Making: With only four community airdrops planned, early years are critical for shaping the future of J.U.P. and our community. Encouraging participation through an even more bolstered ASR pool ensures a diverse range of voices in decision-making, fostering inclusivity and innovation.

  • Preferable Utilization: Further bolstering the ASR presents a superior alternative to burning tokens, preserving their inherent value. Additionally, it surpasses offering passive yield by directly rewarding active community members and further encouraging and incentivizing engagement. Bolstering the ASR pool also outshines the option of bolstering the DAO reserve, as it prioritizes community involvement in key decisions over accumulating funds.

Proposal Details:

  • Allocation Mechanism: Unclaimed tokens from the airdrop will be divided equally into quarterly ASR pools, ensuring fair distribution and ongoing incentivization.

  • Initial Allocation: With an estimated 175-225 million $JUP tokens anticipated to go unclaimed this year when the claim window closes on 1st July 2024, 1/4 of this would be added to the July-September ASR pool, and 1/4 to each of the next three quarters. Subsequent unclaimed community airdrop distributions will follow this pattern annually, until the community airdrops end, and/or unless altered by another DAO vote. Any revisions to the proposal will be subject to community voting. This ensures democratic decision-making and adaptability to evolving community needs.

Conclusion:
In further bolstering the ASR pool, we prioritize active community involvement, strategic decision-making, and the preservation of token value. By embracing this proposal, we lay the foundation for a vibrant, engaged, and forward-thinking community, poised to shape its own destiny. Although the $JUP may go unclaimed in the community airdrops, by utilizing it to further bolster the ASR pool, we will hopefully ensure the $JUP does ultimately go to the J.U.P. community, i.e. to the collective DAO and its component members/voters.

This proposal awaits the community’s deliberation and hopeful endorsement, marking a significant step towards realizing our collective vision.

29 Likes

I would support any unclaimed token, post a reasonable “claiming” window to go back to the pool for future airdrops to the active members.

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Just steel manning this… wouldnt burning the tokens be helping the network long term? And make participation seem even more important?

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I think this a fantastic idea and fully support it.

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Didn’t know that there’s so much unclaimed JUP from Jupuary :exploding_head:

It would be really nice and good way to give additional rewards to loyal/active stakers each quarter. I also have seen some of our local community members asking for the same thing. Looking forward to this proposal. As always, you’re the best WTP!

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Great proposal! I think that would be a great way to use the unclaimed JUP. Just burning it doesn’t seem to be the best way to enrich the community. It would be better to support DAO participation.

Although it would be best if everyone who got an allocation was able to claim, for whatever reason they can’t. So those valuable JUPs need to be put into the right hands, and what better hands than the active members of the DAO. Another option would be adding it to next Jupuary. But I think adding them to ASR would go further.

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Thank you, John! Appreciate the support!

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Appreciate the reply and the attempt to steel man this! I had been going mostly off of gut feelings before. Thinking about it a bit more, if we were to burn these tokens, we’d reduce total supply by about 2% (200 million out of 10 billion). Coincidentally, the average amount of $JUP used to vote on the proposals so far has been around 200 million $JUP. In aggregate over the four quarters, that would mean a roughly 100% increase, or a doubling of the amount of $JUP staked and voted with; even if not 100% of the additional $JUP gets locked, the increase will almost certainly be by a more meaningful amount, both in quantity and significance, than the 2% decrease in total supply.

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Thank you for the reply. I hadn’t actually considered this. How would it be added to the next airdrop? As in, would it just be added to the next 1bn community airdrop, or set aside to try to build up for a fifth community airdrop? Or something else?
I think my main concern with this approach is that, if the Dune query results are accurate, only about 11% of the original $JUP wallets that received the airdrop are still holding the $JUP. The platform is so widely used, that only a portion of the “active” users of the platform are still holding and/or are truly active in the DAO. Since it is the governance token, I would personally prefer we reward the truly active members of the DAO.

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Wait - what? :thinking: How does a bolstered ASR pool ensure diversity?

Unfortunately there is a lot of filler and buzzwords in here - making it difficult to know what’s being said. The title is pretty good tho!

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Ive been also thinking that the tokens may be most fairly distributed to to active members of the community as intended. I support this :saluting_face:

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Ah. Sorry for the poor wording. What I meant was that, with a bolstered ASR pool, we’ll hopefully be able to retain the existing DAO participants and attract new ones, and that will hopefully help ensure a diverse range of opinions (with a larger DAO membership).
I am sorry about the buzz words, too. I put my lengthy thoughts into ChatGPT to try to get help organizing them and making things more concise, but it added a bunch of buzzwords. If you can believe it, it was WAY worse before this…lol

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Thank you, JAO! Appreciate your feedback. Yeah. It’s a lot of unclaimed $JUP - a bit over 20% of the total airdrop at the moment. I suspect the next airdrop will have less unclaimed $JUP, since it will only have one years worth of jup.ag users, compared to this first one which spanned several years of users. We will see, though. I hope the proposal resonates with others - I like the idea of the active DAO members carrying on the torch for $JUP recipients who couldn’t or did not claim for one reason or another, and putting that $JUP to good use!

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Thank you, Kill! Better said, and more concisely than I could myself!

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First of all, I like the idea of rewarding existing members who have been faithful and active. But what about the idea of dividing the unclaimed tokens into 2 pools? For easy math, let’s just say it’s 200 million. So pool 1 is 100 million and goes to reward existing members based on a snapshot of previous activity/history, in essence rewarding members for their loyalty and community participation, and then another pool of 100 million tokens that is meant to incentivize additional staking and to attract new members. Every wallet that stakes at least 100 JUP, and up to 5,000 JUP, during the first 29 days after the snapshot of pool 1 (29 days is deliberate to avoid some trying to unstake and restake their existing JUP), is eligible to receive an allocation of the 100 million pool 2. So new staking is the key, i.e. If an existing staker, adds to their staked amount during the 29 days then the number of new tokens staked are eligible for pool 2, but not what was already staked prior to the snapshot for pool 1. The 5K cap is meant to prevent a whale from staking like 10 million in order to gain a larger share of pool 2. The point of pool 2 is to attract more people, not to attract a few whales. So if 40,000 wallets staked 5K JUP each, they could each be eligible to receive up to 2500 JUP, a 50% return. That would be attractive to many and I think you could get more than 40,000 to participate. especially if they know that whales are not gobbling up all the rewards. This would drive the price of JUP up as more buy JUP to stake. The pool 2 staking done during the 29 day window would have to be locked up until after the July Sept reward period. By locking people into a 3-4 month lock would encourage further participation in voting and other activities in order to maximize the July Sept reward period. It’s almost like saying, look, come give the community a try for 4 months, if you like what you see you are welcome to stay and be a part of the journey. If you don’t like it, then you are free to take your rewards at the end of the trial period and unstake your JUP. But if the rewards are good, people will be excited and stay. If the rewards are bad, that would imply a whole lot of people staked way more than we expected, which means a lot of JUP was bought to be staked for 4 months. I know some could create new wallets and and stake 5K in each wallet, which is true and aside from verifying with Twitter addresses or something similar, not sure how to combat this, but I can’t see whales trying to open up 100,000 new wallets just to stake 5 k in each. The whole point of pool 2 is to encourage the masses to stake new JUP in order to grow the community. Anyway, this was off the cuff after a stiff drink, so poke all the holes in you need to, but I have to believe that offering up 100 million JUP to new or existing shrimp stakers will help grow the community or encourage the existing members to be even more commited.

Ok yeah - no problem. I feel you - sometimes it feels like these proposals need to be long and thorough to be taken seriously.

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I think the current airdrop timeline should remain, adding additional tokens to the air drop would add more down pressure on price. So I think the best path would be to hold the unclaimed tokens, and any future unclaimed tokens and then have airdrop which is additional to the current schedule. This would spread the down pressure due to token unlocks/airdrops out and hopefully having minimal pressure on price.

Ah. I see. That’s interesting. I appreciate the approach you’ve outlined should delay any sell pressure on price to hopefully a later date, when J.U.P. is more developed and such pressure can hopefully be better absorbed. However, if this airdrop is any indication, about 90% of the recipients will be selling (only 11% of original $JUP recipients still have $JUP in their wallets). Whereas, the DAO members/voters are holders and stakers of $JUP, so have shown a propensity to NOT dump the $JUP they either received or outright purchased.
I’ve also proposed spreading out the $JUP into ASR pools over several quarters to hopefully help with any sell pressure that might come from this.
I also think that you might be dismissing additional buy price pressure from folks who see the additional $JUP in the ASR pool and feel more compelled to buy and stake their $JUP because of this proposal (which will bolster voting rewards for the next few years if it passes). Anyway, I am curious to see if others feel the same way as you. I really do want what the community thinks is best for $JUP to happen, so if there is a more preferable approach or better use of the unclaimed $JUP, I hope this proposal fails and that one makes it through. Truly. :slight_smile:

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Great proposal, fully support

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you make a good point, backed by statistics, the previous airdrop, approx 90% were sold off, it’s highly likely that any additional airdrop would suffer from the same result… I firmly believe adding the unclaimed Jup tokens to the ASR pool, spread out for distribution of 25% for each quarter after the claim period has ended, most definitely rewards those who are least likely to cause any downward pressure on the tokens price. The stakers. I agree 100% with what you have intelligently proposed.

2 Likes