Hey! You actually made a really good observation. I made some digging and this is what i came up with:
The claim that MER holders are unlocking 350M JUP per month is actually incorrect. That’s the total amount (350M JUP) allocated to MER stakeholders over a 2-year linear vesting schedule — so the real number is about 14.58M JUP/month.
When it comes to sell pressure, Jupiter’s Litterbox Trust is actively buying back JUP using 50% of protocol revenue — currently about 499K JUP/day, or around 14.97M JUP/month. That’s almost a 1:1 offset with the MER unlocks.
But here’s something interesting to think about: it’s possible the Litterbox was specifically designed to soften the market impact of the MER vesting schedule. The timing and structure line up pretty closely. If that’s the case, it’s a clever way to absorb sell pressure and help stabilize the token through this phase.
That said, MER isn’t the only source of unlocks. There are team allocations, contributor rewards, and other distributions happening too — so even a smart system like Litterbox can’t offset everything on its own.
Also worth noting: the tokens in Litterbox are locked — not burned — so while they help with short-term pressure, they don’t permanently reduce supply. For permanent supply cuts, the 3 billion JUP burn from January 2025 is the key milestone.
Overall, it seems like there’s more strategy in place than some people give credit for — but yeah, it’s still fair to ask how all these pieces play out in the long run.
It would be great to ask more questions around this area, and what the team is really doing.
You can find more infor in here: JUP Community Audit - Feb 2025
Major Updates:
- As part of the Supply Reduction Proposal, these allocations were also correspondingly reduced by 30% each.
- Mercurial Stakeholders have their allocation reduced from 500M to 350M