Jupiter Co-Founder Meow Proposes 30% Cut to JUP Supply, Sparking 7% Gain – Unchained

In addition to reducing the total supply, the proposal also aims to cut the team’s assigned token allocation and introduce a “corresponding 30% reduction in Jupuary emissions.”

On Wednesday, pseudonymous co-founder of Jupiter, who goes by Meow, posted a draft proposal about changing the tokenomics of JUP, the cryptocurrency powering the Solana-based decentralized exchange aggregator.

The proposal includes several elements, including a 30% reduction in the JUP total supply, which currently stands at 10 billion tokens, a voluntary team cut of 30% from their assigned allocation, and a “corresponding 30% reduction in Jupuary emissions.” Unchained reached out to Meow to find out whether this was a reduction for a single month or for every January.  

His remarks appear to have sparked a rally in the token. JUP was trading around 71 cents at the time of his post and has since increased roughly 7% to 76 cents, per TradingView. 

Even though Jupiter’s JUP token is currently trading higher than the day of its airdrop in Jan. when it traded at 66 cents, JUP shed more than half its value from its $1.75 all-time high in March, data from CoinGecko shows. 

Read More: Jupiter Token Reaches All-Time High Amid Controversial Governance Vote to Allocate 4.5 Million JUP to Core Working Group

Meow’s Concerns

In a live broadcast, Meow noted a few concerns. “The first main concern is that our [fully diluted valuation] and our total supply is pretty bad.” At presstime, Jupiter has a fully diluted valuation of $7.76 billion, per CoinGecko. “Also, there are ongoing concerns about emissions,” Meow added. 

The difference between JUP’s total supply and its current circulating supply is 8.65 billion tokens, more than six times the current circulating supply. 

The proposed reductions “will cut the fat off the [fully diluted valuation], activate the community to really understand JUP tokenomics, as well as address concerns around high levels of emissions and motivate everyone towards growing the meta together,” according to an almost 500-word tweet from Meow. The governance vote to reduce the supply of JUP will occur in July.

The rough draft of the tokenomics proposal comes as a number of crypto projects are unlocking large amounts of tokens, previously frozen in part to prevent team members and investors from selling en-masse during the early stage of the project. 

Read More: Over $740 Million Worth of Tokens to Unlock in Next 30 Days 

Jupiter has generated $159 million in 24-hour trading volume, the third largest decentralized exchange behind THORChain’s $188 million and Uniswap’s $348 million.