Jupiter Genesis is considering halting JUP Buyback, Community Suggests Rewarding Long-Term Hodlers with Staking and Protocol Asset Incentives

BlockBeats News, January 4th, Jupiter Co-Founder SIONG published an article discussing "Whether to Stop JUP Repurchase," stating that over 70 million USD was spent on JUP repurchase last year, but the price did not change significantly. The 70 million USD could be used to provide growth incentives for existing and new users.

In response to the discussion on "Whether to Stop JUP Repurchase," Solana Co-Founder Anatoly Yakovenko suggested that it would be best to store profits in the form of "protocol assets claimable in the future." Users could lock and stake their assets for a year to earn token rewards. As the balance sheet grows, stakers could earn greater rewards.

Multicoin Co-Founder Kyle Samani agreed with the core idea of Anatoly Yakovenko but suggested that the mechanism needs further optimization. Traditional stocks do not effectively reward long-term holders. Cryptoteams should find ways to allocate excess value to long-term holders.

Jordi Alexander, Founder of Selini Capital, mentioned that "adjusting the repurchase amount based on price is a good approach. If the price is low, repurchasing should be done as much as possible to significantly reduce the supply. When the market is overheated, the pace should be slowed down. Some founders are more accustomed to traditional stock buyback decisions made by the CEO/management, where they can buy back temporarily. However, if transparency, predictability, or legal issues are the primary considerations, then a more decentralized protocol can achieve this programmatically, perhaps by using computed P/E ratios. Each protocol can design its own P/E ratio for repurchase based on its specific circumstances."

fabianno.sol, a KOL in the Solana ecosystem, mentioned, "The reason why JUP repurchase is not effective is that currently, people do not have a reason to hold JUP. I believe the right process should be: first give people a reason to hold the token, and then repurchase after that condition is met. Repurchase and burn are still one of the best deflationary mechanisms, but it takes time. Currently, 50 million JUP (approximately 10 million USD) is distributed quarterly as staking rewards, and Jupiter can use 50% of the revenue to repurchase JUP for the Litterbox, repurchasing 10–20 million USD worth of JUP each quarter. A potential alternative is if the 10 million USD is used for staking rewards instead of JUP repurchase, based on the current price, this could generate around a 25% APY, which is very attractive. Although this is not a direct deflationary mechanism, I believe it is more beneficial to the token price than simple repurchase."