Solana’s largest decentralized alternate aggregator, Jupiter, has determined to halt all neighborhood voting by way of subsequent yr and hold its governance Treasury sealed till 2027, citing neighborhood burnout and a must prioritize constructing new merchandise.
The transfer quickly disables one of many predominant utilities for Jupiter’s native token, JUP, which powers governance proposals and choices inside the Jupiter DAO.
Voting actions will likely be on maintain till a minimum of the tip of 2025, in accordance with a press release shared by group member Kash Dhanda.
He wrote:
“Lately, one factor has change into clear: the present DAO construction isn’t working as meant. We hear the complaints. We see the breakdown in belief. We really feel the perpetual FUD cycle that grows with each vote.”
The assertion added that the group intends to shift power away from frequent governance votes and towards strengthening the venture’s product suite and market place.
The governance pause comes as Jupiter’s DEX stays a serious participant on Solana, with greater than $2.2 billion locked on the platform and day by day charges averaging $1.6 million. It handles upwards of 80,000 token swaps every day, serving over 18,000 day by day energetic merchants.
Nonetheless, Jupiter’s aggregator has misplaced momentum in latest months, with consumer visitors dropping by as much as 60% and rivals like PumpSwap dominating the meme coin area of interest, now accounting for a majority of that buying and selling quantity on Solana.
Treasury closed till 2027
Beneath the brand new plan, the DAO’s fund, recognized internally because the Litterbox Trustm will stay inaccessible for brand spanking new spending or price range proposals for the following two years.
Income from staking companies similar to jupSOL will proceed to feed the Treasury, however recent JUP minting for workgroups and governance rewards has been suspended.
Common staking will nonetheless be accessible to token holders, with about 50 million JUP reserved for ongoing staking incentives. Other than an upcoming 700 million token distribution, a part of the ultimate section of the Jupuary airdrop, no extra JUP emissions are deliberate.
The group expects the break in governance rewards to assist cut back promoting strain on the token, which has not too long ago hovered close to annual lows of round $0.40.
A redesigned governance construction is ready to be launched in 2026, aiming to deal with previous disputes and streamline decision-making earlier than the Treasury absolutely reopens the next yr.
