Jupiter has initiated a crucial voting process for its token holders. The proposal at hand involves a substantial reduction in the supply of JUP tokens, potentially cutting 3 billion from the total circulation. This bold step is part of a larger strategy aimed at reshaping their tokenomics and strengthening its position in the competitive crypto landscape.
Jupiter Initiates Vote on JUP Token Supply Reduction
Jupiter, a prominent player in the cryptocurrency space, has launched a significant voting process for its token holders. The proposal on the table is a substantial reduction in the supply of JUP tokens, aiming to cut 3 billion from the total circulation.
The primary goal of this Supply Reduction Proposal is to enhance certainty, alignment, and transparency (CAT) for all JUP holders and the broader community. This move comes as part of a series of important announcements and changes for the ecosystem.
Prior to this development, the pseudonymous co-founder, known as Meow, had revealed plans for a major overhaul of JUP tokenomics. The initial proposal suggested a 30% reduction in the total supply of JUP, which currently stands at 10 billion tokens. Additionally, it included a voluntary 30% cut from the team’s allocated tokens and a corresponding 30% decrease in “Jupuary” emissions.
The current vote represents the first of three planned J4J (Jupiter for Jupiter) votes, with upcoming ballots set to address the extension of Jupuaries and ASRs (Annual Staking Rewards). In this initial proposal, Meow and the Core Team are advocating for a reduction in the total supply from 10 billion to 7 billion JUP tokens.
This vote is part of a broader strategy to build greater certainty and alignment within the JUP community and holder base. The team aims to address concerns about high fully diluted valuation (FDV), provide industry-leading transparency around token distribution, and allow voters to have a say in major aspects of potential emissions.
The proposed reductions will come from multiple sources. The team has volunteered to cut 30% from their assigned allocation, there will be a corresponding 30% reduction in Jupuary emissions, and the remaining cuts will come from previously assigned allocations such as liquidity provider (LP) and strategic reserves.
The team hopes that with the completion of an audit, the release of an ethos essay, and this reduction in supply, the community will gain a much clearer understanding of the collective plans for JUP. The ultimate goal is to enable the community to move forward and execute their shared vision as a cohesive unit.
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Strategic Partnerships to Enhance Perpetual Marketplace
In parallel with these tokenomics changes, Jupiter had earlier announced strategic collaborations aimed at enhancing its perpetual marketplace. This news was shared by the co-founder Meow highlighting the company’s commitment to sustainable growth and improvement in the perpetual contract market.
Meow emphasized that maintaining a viable perpetual contract market requires ongoing engagement from both traders and liquidity providers. To achieve this, they plan on taking a measured approach, prioritizing comprehensive improvements over quick fixes. The company has forged partnerships with industry leaders Chaos Labs, Gauntlet, and Offside Labs to drive these improvements.
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The post Jupiter Launches Voting For JUP Supply Cut By 3 Billion appeared first on CoinGape.
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