JUP token at crossroads as Jupiter questions $70M buyback strategy
Jupiter — the Solana-based DeFi “super-app” that has expanded from a DEX aggregator into lending, prediction markets and perpetuals — is debating whether to abandon its high-profile JUP token buyback after spending roughly $70 million on the program.
On Jan. 2, Jupiter co-founder and CTO Siong Ong told followers the team has “not seen much impact” from the buybacks and called the effort a potential “waste” of resources. “We spent more than $70M on buyback last year, and the price obviously didn’t move much. We can use the $70M to give out for growth incentives for existing and new users,” Ong wrote, echoing recent comments from Helium founder Amir Haleem about ending HNT buybacks.
Buyback history and price action
- Jupiter launched the JUP buyback program in mid-February 2025 and reportedly spent about $70 million on repurchases.
- The token initially responded: JUP rallied roughly 300% in the first month after the buyback started.
- Despite that pop, JUP later slid to new yearly lows in 2025. At the time of reporting it traded near $0.20 versus a peak of $1.80 — an approximately 88% drop from the high (source: TradingView).
Community split on next steps
The proposal to stop buybacks has split the Jupiter community. Some users argue the funds would be better deployed as direct incentives to users and stakers — a move they say would raise staking yields and reduce selling pressure.
One community estimate noted that with about 753 million JUP staked, redirecting revenue could amount to nearly $0.09 per staked JUP and translate to an attractive dividend-style yield (the post claimed a roughly 43% dividend yield). Ong pushed back, asking how the product would sustain growth if most revenue were diverted to staking rewards.
Analysts and alternatives
Independent analyst Fabiano has been blunt: as currently structured, JUP doesn’t represent protocol equity and therefore offers limited reasons for long-term holders to keep the token. He suggested a stopgap: share protocol revenue with stakers to reduce quarterly dumping. Fabiano estimated that redirecting around $10 million toward staking rewards at current prices could yield roughly 25% APY — a potentially compelling short-term incentive (source: X).
Not everyone is convinced buybacks are inherently flawed. Critics point to projects such as Pump.fun whose performance remained muted despite massive buybacks, arguing that buybacks aren’t a one-size-fits-all solution. Conversely, some protocols — notably Hyperliquid (HYPE) and Aave (AAVE) — have seen positive outcomes from buyback/tokenomics tweaks, particularly during bullish market stretches.
Where Jupiter stands
Jupiter’s team has solicited feedback but has not yet committed to a course. The platform has continued product development while generating cumulative revenue that DeFiLlama tallies at roughly $369 million — a reminder that the token debate is only one facet of broader platform growth.
Bottom line: Jupiter faces a classic tokenomics choice — continue buybacks that showed an initial effect but failed to sustain price support, or repurpose capital toward user growth and staking incentives to align token economics more directly with platform usage. The community and team remain divided, and a final decision has yet to emerge.
Disclaimer: This article is informational and not investment advice. Cryptocurrency investments carry significant risk; do your own research before making decisions.
Read more AI-generated news on: undefined/news
