215M $JUP Set Aside for Future Active Staking Rewards - What Does this Mean for $JUP?

Jupiter DAO, the decentralized community governing the Jupiter ecosystem, has cast its verdict on whether or not to extend its ASR (Active Staking Rewards) program.

Despite voters largely aligning on one outcome, the recent ASR vote was one of the more divisive proposals in Jupiter governance history. 

What does the proposal’s outcome mean for $JUP and what kind of rewards can voters expect on claim day?

Jupiter Community Votes in Favor of ASR Extension

Jupiter DAO’s 13th governance proposal has concluded, with 69% of voters opting to extend ASR for at least another year.

Jupiter DAO’s recent proposal deliberated on what was to be done with the 215M $JUP tokens that went unclaimed during Jupiter’s initial TGE (Token Generation Event) in January 2024. Based on the outcome of the proposal, 215M $JUP, currently valued at $173M, would be:

• Used to fund future ASR

• Burnt

• Returned to Community Multisig

Leading up to the crucial vote, Jupiter co-founder Meow encouraged participants to vote in favor of extending ASR rewards. Contending that the “purpose of ASR is to “create a really vibrant and virtuous cycle where committed $JUP voters gain increasing amounts of voting power”, Meow encouraged the Jupiter community to support the extension.

With 378.5M $JUP, representing 28% of the circulating supply, staked across over 592,000 unique wallets, Jupiter DAO is arguably one of crypto’s biggest governance experiments. 

In contrast to established trends, the recent proposal was slightly more divisive than previous votes, with the option to extend ASR netting 69% of DAO voting power. Across the last four proposals, the winning option has attracted an average of 82% of votes.

Pro-burn commentators took to social media to air their grievances, implying that the continuation of ASR will have a negative impact on $JUP price.

Outside of a few frustrated parties, community reaction to the outcome has been largely positive, with most participants expressing enthusiasm and excitement toward future ASR installments.

Voters Expected to Receive $0.17 per 1 Staked $JUP

According to unofficial community calculators, ASR voters who participated in every Jupiter DAO governance proposal are expected to earn around $0.17 per staked $JUP. This translates to an approximate return of 18% on any staked $JUP.

Voters can also expect to receive small allocations from Solana-based teams, like Sanctum and deBridge, that opted to launch their native tokens via Jupiter’s LFG launchpad.

$JUP Rose 50.64% Following Previous ASR Distribution

Historically, the distribution of Jupiter ASR has been a bullish catalyst for $JUP. Following the previous release of ASR tokens, $JUP surged 50.64%, climbing from $0.77 to trade at $1.16 just three weeks after claims went live on July 6. 

While social reaction to the proposal’s outcome has been largely positive, market dynamics indicate bearish forces are at play. Since the outcome of the proposal went public, $JUP price has dropped 4.7%, sliding from $0.84 to $0.80 based on Step Finance data.

Some might argue that the community’s decision to introduce 215M $JUP tokens to circulation is the cause for this decline. 

However, it is far more likely than $JUP’s dip is due to rising geopolitical conflicts and bearish dynamics across the industry, rather than the outcome of the recent proposal.

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