Jupiter DAO has opened a vote to impose zero net emissions on JUP and potentially cancel the upcoming Jupuary airdrop.
The proposal aims to reduce token dilution as JUP trades near $0.16, close to the bottom of its range.
The governance vote ends on February 22 and could significantly alter Jupiter tokenomics.
Jupiter DAO Vote Pits Jupuary Against Zero Net Emissions
According to press release, Jupiter DAO presented two options to token holders. Voters can either proceed with Jupuary or adopt a zero net emission schedule.
If the community preserves Jupuary, the team will release the airdrop checker one week after the vote.
Jupiter will then distribute 200 million JUP tokens. The remaining bonus pools and Jupnet incentives will continue under their existing schedule.
If the DAO cancels Jupuary, Jupiter will return 700 million prepared JUP tokens to the Community Cold Multisig wallet.
The original airdrop snapshot will remain valid for future use. The zero emissions plan also requires the team to halt its own token emissions indefinitely.
Jupiter will accelerate Mercurial vesting under the alternative proposal. The team stated it may conduct buybacks to absorb sell pressure from newly unlocked tokens.
Jupiter tokenomics currently relies on cliff vesting, which can increase supply shocks during unlock events.
The proposed shift would change projected unlock schedules and could affect JUP price trends.
Ahead of the vote, JUP climbed to a one-week local high after remaining range-bound for weeks.
Jupuary had faced scrutiny as market conditions stagnated across leading protocols.
Community questions incentives and dilution
Community members remain divided over the proposal. Supporters of Jupuary argued that airdrops remain key incentives for on-chain participation. They recalled that a 2024 governance vote approved two Jupuary events instead of one.
Critics of the cancellation argued that the team would continue receiving JUP through Mercurial vesting. They stated that removing Jupuary could preserve team rewards while limiting community benefits.
Airdrop mining has continued despite reduced returns. Users reported that recent distributions barely covered Solana network fees and trading costs.
While Solana-based projects generate significant fees, participants questioned whether smaller airdrops justify on-chain activity.
Jupiter generates $839 million in annualized fees. Without Jupuary, community rewards would decline substantially.
The February 22 vote will decide whether Jupiter DAO adopts zero emissions or maintains its Jupuary airdrop model.