Jupiter Exchange’s Planned $1.6 Billion “Jupuary” Airdrop to Undergo Second Vote

Solana-based decentralized exchange (DEX) aggregator Jupiter (JUP) will hold a second vote to decide the dynamics of a scheduled 1.4 billion JUP (currently valued at around $1.6 billion) token airdrop to its community. The second vote has become necessary after the initial voting round failed to produce a clear winner based on a threshold set by the Jupiter team.

What’s the Latest News on the Jupiter (JUP) Airdrop?

Earlier this week, the Jupiter DAO, comprising JUP holders, cast votes to determine the distribution of Jupiter’s annual airdrop, a.k.a “Jupuary.” The proposal, put forth by the Jupiter team after much community feedback, wanted the distribution of 1.4 billion JUP over the next two January, with 700 million JUP distributed each year.

However, the closely debated proposal did not pass, with 58% voting in favor of the distribution and 42% voting against it. The Jupiter team had set a 70% favorable vote threshold for the round, citing its desire “that the whole community is unified” on the final decision.

As seen in multiple community feedbacks on the proposal, many who are against the move claim that such a wide distribution would dilute existing JUP holders. A large percentage of JUP holders have locked tokens on the platform for voting rewards which are distributed quarterly. This community of voters fears that an influx of the token’s circulating supply would make JUP worth less in price even after a different proposal cut supply by 30%.

On the other hand, some in the community who favor the large distribution believe sufficient demand exists for JUP, and the token’s price will weather any increase in circulating supply. At the time of writing, 1.35 billion JUP tokens are in circulation, a tally that will rise to a little above 2 billion if the 700 million airdrop distribution plan scales through.

Meanwhile, others are campaigning for an airdrop distribution model that gives receivers vested tokens that can be unlocked over time to minimize selling pressure. A certain amount, however, would be made instantly available, ensuring users would still get rewarded, in line with Jupiter’s goal for Jupuary.

What’s Next for the JUP Airdrop?

The Jupiter team plans to review the community feedback in the coming days and submit a new proposal that addresses most of the concerns raised. The new proposal is scheduled to go live on December 2 or 3, 2024. Meanwhile, the team assures that Jupuary (the JUP annual airdrop) will still hold, but only when the community agrees on a proposal that satisfies at least 70% of staked JUP voters.