Pseudonymous co-founder of Jupiter, known as Meow, published a draft proposal to alter the tokenomics of JUP, the native token of the Solana-based decentralized exchange aggregator.
Pseudonymous co-founder of Jupiter, known as Meow, published a draft proposal to alter the tokenomics of JUP, the native token of the Solana-based decentralized exchange aggregator. This proposal suggests significant changes, including a 30% reduction in the total supply of JUP, currently at 10 billion tokens, a voluntary 30% cut from the team’s allocated tokens, and a corresponding 30% decrease in “Jupuary” emissions.
"The primary concern is that our fully diluted valuation (FDV) and total supply are problematic," Meow said. Currently, Jupiter has an FDV of $7.74 billion, according to CoinMarketCap. "Additionally, there are ongoing concerns about emissions," Meow added.
The announcement caused JUP to rise approximately 7% to $0.82. However, it has since traded back down and is flat for the past 24 hours, trading around $0.77. JUP is still trading higher than its initial airdrop price of $0.66 in January, however, it has lost more than half of its value from its all-time high of $1.75 in March.
The disparity between JUP's total supply and its current circulating supply is substantial, with 8.65 billion tokens yet to circulate, more than six times the current circulating supply. Meow believes the proposed reductions will "trim the excess from the FDV, engage the community in understanding JUP’s tokenomics, address concerns over high emissions, and motivate everyone towards collective growth."
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