Jupiter Exchange, a leading decentralized trade aggregator on Solana, announced plans to allocate 50% of its protocol costs to the return and lock of Jup tokens for three years, starting, February 17.
The initiative, which aims to reduce circulating delivery and to increase the long-term stability, is part of Jupiter’s wider strategy to improve the sustainability of the platform and to stimulate deeper involvement within the Solana ecosystem .
Switch from token burns to locked back purchase
The exchange will roll out a special dashboard next week and offer transparency in its return activities.
The dashboard will follow real-time from purchased Jup tokens and their subsequent locking process, so that members of the community can check the impact of the initiative.
The last return effort from Jupiter follows a similar initiative in January, when the stock market used 50% of the protocol costs to buy back and burn Jup tokens, which contributes to an increase of 60% in the market value of token.
However, the shift from combustion to lock suggests a long -term obligation to deliver management instead of in the short term price promotion. By locking the purchased tokens for three years, Jupiter wants to adjust incentives to the growth of sustainable platform while retaining the liquidity for active trade.
Expand the presence of Jupiter
The Buyback initiative follows the most important discussions at the recent Catbedsault conference, where executives of Jupiter described the upcoming platform improvements and have indicated on potential acquisitions to strengthen its role within the Solana Ecosystem.
The exchange has positioned itself as an important player in the Defi space of Solana, which facilitates efficient tokens waps and liquidity aggregation for traders and developers.
Jupiter’s decision to introduce a structured repurchase program reflects broader trends in the crypto industry, in which trade shows and protocols increasingly use nutritional control mechanisms to stabilize the token value and to stimulate user participation.
Large platforms have used comparable strategies, including the BNB Burns from Binance Smart Chain and the Buyback-and-Burn approach from Makerdao for MKR Governance tokens.
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