Jupiter to buyback JUP tokens with 50% of fees starting next week
Jupiter Exchange, a leading decentralized trading aggregator on Solana, announced plans to allocate 50% of its protocol fees toward repurchasing and locking JUP tokens for three years, starting Feb. 17.
The initiative, which aims to reduce circulating supply and increase long-term stability, is part of Jupiters broader strategy to enhance platform sustainability and drive deeper engagement within the Solana ecosystem.
Shift from token burns to locked buybacks
The exchange will roll out a dedicated dashboard next week, offering transparency into its buyback operations.
The dashboard will provide real-time tracking of repurchased JUP tokens and their subsequent locking process, allowing community members to monitor the initiatives impact.
Jupiters 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 tokens market value.
However, the shift from burning to locking suggests a long-term commitment to supply management rather than short-term price action. By locking the repurchased tokens for three years, Jupiter aims to align incentives with sustained platform growth while maintaining liquidity for active trading.
Expanding Jupiters presence
The buyback initiative follows key discussions at the recent Catbedsault Conference, where Jupiter executives detailed upcoming platform enhancements and hinted at potential acquisitions to strengthen its role within the Solana ecosystem.
The exchange has positioned itself as a major player in Solanas DeFi space, facilitating efficient token swaps and liquidity aggregation for traders and developers.
Jupiters 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 Chains BNB burns and MakerDAOs buyback-and-burn approach for MKR governance tokens.
The post Jupiter to buyback JUP tokens with 50% of fees starting next week appeared first on CryptoSlate.
Read more: https://cryptoslate.com/jupiter-to-buyback-jup-tokens-with-50-of-fees-starting-next-week/
Text source: CryptoSlate
