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The Surge of Jupiter Token: A Result of Community Governance Initiatives
The native token of Solana-based decentralized exchange (DEX) aggregator Jupiter, JUP, experienced a notable surge on Thursday, reaching almost $0.78 with a 35% increase in the last 24 hours, as reported by CoinGecko. This surge propelled the token’s market cap back over $1 billion after remaining below that threshold throughout February.
The significant price jump, the most substantial in the token’s brief five-week history, can be attributed partially to Jupiter’s introduction of a community-driven governance mechanism for selecting tokens to be launched via its launchpad. The platform unveiled an incentivized voting process allowing community members to participate in the selection of upcoming token launches.
Jupiter’s Community Governance Initiative
Last month, Jupiter’s founder, known as Meow, announced that community members would have the opportunity to vote on a selection of pre-approved Solana-based projects to determine which ones would launch native tokens via the LFG token launchpad. The voting process commenced recently, offering participants the chance to earn rewards for their involvement.
Voting for LFG candidates is now live!
JUP holders can now stake their JUP and vote for the top 2 LFG candidates to launch next. 🗳️March 7, 2024
To participate in the voting process, community members must stake any amount of JUP tokens on the Jupiter DAO website, with the weight of their vote proportionate to the number of tokens staked. Jupiter announced that voters would receive monetary rewards for engaging in the selection process, with 100 million JUP and 75% of launchpad fees from future LFG launches allocated for distribution to voters on a quarterly basis.
Since the opening of LFG Round 1, community members have staked an impressive 158.46 million JUP, equivalent to approximately $123.44 million, to cast their votes on the proposed projects. The selection includes six Solana-based initiatives that have engaged with the Jupiter community through various outreach efforts in the past month.
The projects in consideration for token launches via the LFG program include UpRock, Banx, Srcful, Sharky, Zeus, and MonkeyDEX, each offering unique value propositions within the Solana ecosystem. Current voting standings show SharkyFi leading the competition with 39% of votes, closely followed by Zeus at 33%, while UpRock trails behind at 14%. Community members have until Sunday to submit their votes.
Participants who wish to withdraw their JUP tokens from the Jupiter DAO can do so at any time, with the unstaking process taking 30 days to complete. During this period, users retain the ability to vote on Jupiter DAO proposals, albeit with diminishing voting power over time.
While the Jupiter DAO and LFG program emphasize decentralization, it is important to note that the initial candidates for LFG voting rounds were handpicked by Jupiter’s leadership. Future cycles may involve selections made by either the Jupiter leadership or the Jupiter DAO’s Community Working Group (CWG), leading towards a more community-driven nomination process as the platform evolves.
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