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Jupiter is about to stop $JUP buybacks — and I think it’s the right call
For most governance tokens, buybacks do nothing
What would matter is real revenue sharing in USDC
I expect we’ll see more projects move in that direction over time
REVENUE SHARING
Buybacks for JUP don’t work just because they’re buybacks.
They don’t work because people currently don’t see a reason to hold JUP.
What happens?
People sell into the buyback bids.
IMO, the process should be:
1️⃣ Give people a reason to hold the token
Give them hope and a clear narrative for why the price could go up.
This is currently missing with JUP.
You obviously have:
One of the best teams and the best products
But the token isn’t tied to the company.
So even if the company is extremely successful, people have realized that it won’t necessarily benefit the token
(deeper issue: token ≠ equity).
2️⃣ Do buybacks (after 1️⃣ is fulfilled)
Buybacks and burns are still among the best deflationary mechanisms we have — but they take time.
They’re often an exponential process: People only start noticing and pricing in the deflationary effect at a later stage.
So what should be done right now?
I still think ASR in $ (jupUSD) is the key.
Currently:
50M JUP (~$10M) is distributed as staking rewards every quarter
These funds come from unclaimed ASR, Jupuary, etc.
The problem?
Most people dump these tokens to offset losses.
The solution?
Jupiter uses 50% of its revenue to buy JUP tokens for the Litterbox.
Each quarter, they buy between $10M–$20M worth of JUP.
However, as described above, the effect has been minimal, even when combined with burns.
A potential alternative
What if we redirected those $10M toward staking rewards,
instead of buying JUP for the Litterbox?
At current prices, this could result in roughly 25% APY —
which is insanely attractive.
Even though this isn’t a directly deflationary mechanism, I’m confident it would benefit the token price more than buybacks alone.
ps. this is my personal opinion and I could be wrong but I genuinely love Jupiter and the whole community
PSG1 has officially crossed 10,000 device sales 👾
We want to take this moment to thank all our users, partners, and fans across the Web3 space for fueling the on-chain gaming revolution.
$PLAY is coming!
Hundreds of Players are unboxing their PSG1s but what can you play ?
Day 1 lineup:
-Play Solana Origins: Chapter I
-@GORECATS
-@MeegosNFT
-@mattlefun
-@HegeCoin
More games dropping soon 👾 stay tuned.