Jupiter DAO plans to reduce the JUP issuance to nearly zero, with the 700 million airdrop possibly delayed

JUP-5,3%
SOL-3,33%

On February 14th, the important Solana ecosystem project Jupiter submitted a key proposal to its DAO, planning to reduce the net token issuance of JUP to “near zero” to alleviate market concerns over inflation and selling pressure, and to strengthen the long-term value support of the token. The proposal has entered the community voting stage, and the final result will be decided by token holders.

According to the proposal, the team will begin to cut new supply from three main sources. First, all token releases from the team reserve will be indefinitely suspended; unvested tokens will be directly absorbed by the treasury and will no longer flow into the secondary market. Second, the originally planned “Jupuary” airdrop will be postponed; approximately 700 million tokens from this round will be temporarily returned to a multi-signature community wallet, with snapshots of eligible users still retained for future distribution. Third, tokens related to Mercurial unlocks will be accelerated for release but will be repurchased by the treasury to offset potential sell pressure.

Jupiter stated that community anxiety over continuous issuance has become evident. Although the project previously burned 3 billion tokens, extended the team’s lock-up period, and allocated half of on-chain revenue for buybacks, the market still seeks stronger supply control. The team believes that reducing inflation expectations can help boost confidence during market volatility.

The vote offers two options: maintain the original airdrop and issuance schedule, or delay the airdrop and implement a “near zero issuance” strategy. If the latter passes, most new tokens in 2026 will be canceled, reducing sell pressure in the short term, but also delaying rewards for active users.

Regardless of the outcome, this DAO vote will mark an important turning point in Jupiter’s tokenomics and set an example for governance approaches in DeFi projects within the Solana ecosystem.

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