Jupiter Exchange announced that it would be allocating 50% of the protocol fees to repurchase and lock JUP tokens over a three-year period, beginning February 17.
The initiative, which aims to reduce circulating supply and increase long-term stability, is part of Jupiter’s broader strategy to enhance platform sustainability and drive deeper engagement within the Solana ecosystem.
Change from burning tokens to locking buybacks
Next week the exchange will launch a dashboard that provides transparency on its buyback activities.
The dashboard will provide real-time tracking of repurchased JUP tokens and their subsequent locking process, allowing community members to monitor the initiative’s impact.
Jupiter’s latest buyback effort follows a similar initiative in January, when the exchange used 50% of protocol fees to buy back and burn JUP tokens, contributing to a 60% increase in the token’s market value.
The shift to locking tokens from burning them suggests that the focus is on long-term supply management, rather than short term price movements. Jupiter wants to ensure that the tokens it has repurchased are locked for a period of three years. This will align its incentives for sustained growth and maintain liquidity for trading.
Expanding Jupiter’s presence
Jupiter’s buyback program follows discussions held at the Catbedsault Conference where executives from Jupiter discussed platform upgrades and hinted about possible acquisitions that could strengthen Jupiter’s role in the Solana eco-system.
The exchange has positioned itself as a major player in Solana’s DeFi space, facilitating efficient token swaps and liquidity aggregation for traders and developers.
Jupiter’s decision to introduce a structured buyback program mirrors broader trends in the crypto industry, where exchanges and protocols increasingly use supply control mechanisms to stabilize token value and incentivize user participation.
Major platforms have employed similar strategies, including Binance Smart Chain’s BNB burns and MakerDAO’s buyback-and-burn approach for MKR governance tokens.
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