Jupiter Wants to Freeze Every Faucet of New JUP Supply
Jupiter, the largest decentralized exchange aggregator on Solana, has put forward a governance proposal that would eliminate all net-new JUP token emissions for the remainder of 2026. Dubbed "Going Green," the proposal was published on the Jupiter Research forum by COO Kash on February 13 and is now heading toward a DAO vote scheduled for February 17.
The proposal arrives at a painful moment. JUP has fallen to all-time lows near $0.136, Bitcoin has shed roughly 50% from its October peak, and Solana itself is down approximately 65%. Rather than continuing scheduled token distributions into a deteriorating market, the Jupiter team is asking the community to approve a three-pronged supply freeze: postpone the annual Jupuary airdrop indefinitely, pause all team token vesting, and offset any remaining sell pressure from legacy Mercurial stakeholders through active buybacks.
A townhall to discuss the proposal is being hosted today, February 16, at 3:30 PM UTC, ahead of the formal vote.
Three Pillars of Zero Emissions
The "Going Green" strategy targets the three primary sources of new JUP entering circulation.
Jupuary Postponement. The annual Jupuary airdrop, which was expected to distribute 700 million JUP tokens to community participants, would be postponed indefinitely. The tokens would not be destroyed. Instead, they would be returned to a Community Cold Multisig wallet, requiring a future DAO vote before they can be accessed again. User snapshots and eligibility data would be preserved for a future distribution when market conditions improve.
Team Vesting Suspension. Rather than unlocking tokens to team members on their existing vesting schedule, the proposal converts team token allocations into claims against Jupiter's balance sheet. If a team member wants to liquidate their allocation, Jupiter would purchase the equivalent amount of JUP from the open market, effectively turning what would have been sell pressure into buy pressure.
Mercurial Stakeholder Hedging. Mercurial stakeholders, who hold approximately 5% of total JUP supply from legacy allocations, present a structural overhang. The proposal calls for Jupiter to accelerate their vesting while simultaneously purchasing an equivalent amount of JUP from the market to offset any tokens sold. The net effect on circulating supply would be zero.
The $70 Million Buyback War Chest
This proposal does not exist in a vacuum. Jupiter has already deployed significant capital to defend JUP's token economics. The protocol has burned 3 billion JUP tokens to date, removing them permanently from the total supply. Co-founder Meow extended his personal token lockup through 2030 as a signal of long-term commitment. And 50% of all on-chain revenue has been directed toward open-market buybacks, totaling over $70 million in repurchases during 2025 alone.
The team's argument is straightforward: in a bear market where every dollar of sell pressure is amplified, continuing to emit new tokens through airdrops and vesting is counterproductive. By freezing emissions and continuing buybacks, Jupiter aims to shift the supply-demand equation decisively in holders' favor.
At current JUP prices, the 700 million Jupuary airdrop would be worth approximately $95 million at the token's recent trading price. Critics note that this amount is roughly two months of Jupiter's revenue, making the postponement a choice rather than a necessity.
The Community Fracture
Not everyone sees this as a gift. The proposal has split Jupiter's community along a sharp line.
Supporters argue that the bundled approach, addressing all three emission sources simultaneously, sends a stronger market signal than piecemeal adjustments. They point to the "half measures don't move markets" logic articulated in the proposal itself. For existing JUP holders who are underwater, the supply squeeze could provide meaningful price support.
Critics counter that postponing Jupuary is a "retrospective default" on users who participated in Jupiter's ecosystem specifically because they expected the airdrop. These users contributed liquidity, trading volume, and governance participation based on the promise of future token distribution. Moving the goalposts after the fact, the argument goes, erodes the trust that decentralized governance is supposed to protect.
One prominent community member pointed out that Jupiter generates roughly $50 million per month in revenue, making the approximately $30 million airdrop at current prices well within the protocol's means. Their proposed compromise: a 1-year linear vesting schedule for Jupuary tokens rather than a complete postponement.
The DAO vote presents two clean options. Option 1 continues Jupuary as planned with an initial distribution of 200 million tokens. Option 2 implements all three emission-reduction measures as a package. There is no middle ground on the ballot.
What JUP Holders Should Watch
For JUP holders, the vote outcome on February 17 will directly shape token economics for the rest of 2026. If Option 2 passes, the supply side of the equation effectively goes to zero, with the only remaining variable being buyback intensity from ongoing revenue.
Holders should monitor several signals. First, the townhall today at 3:30 PM UTC will reveal how the team responds to criticism and whether any amendments or compromises emerge before the formal vote. Second, on-chain voting participation rates will indicate how much of the community is engaged. Low turnout could mean a vocal minority drives the outcome. Third, watch for whale wallet movements around the vote, as large holders may position ahead of the result.
For users of Solana-ecosystem crypto cards and products, Jupiter's health matters beyond just the JUP token. As the dominant DEX aggregator on Solana, Jupiter's infrastructure underpins token swaps for KAST, xPlace, and other Solana-native card providers. A healthier JUP token could translate to more development resources, better swap routing, and continued investment in products like the Jupiter Global card.
Bear Market Governance Sets a Precedent
Jupiter's proposal is part of a broader pattern across DeFi. When token prices collapse, protocols face a difficult choice: honor scheduled distributions that amplify sell pressure, or break commitments to protect existing holders. Solana's staking ratio continues to climb, and protocols across the ecosystem are tightening their token economics in response to the macro downturn.
The precedent here matters. If Jupiter successfully freezes emissions and the market rewards it with price recovery, other protocols will follow. If the vote fails or the community splinters over broken promises, it could reinforce the argument that on-chain governance struggles to make hard decisions under pressure.
For the broader Solana ecosystem, which supports multiple self-custody card options and DeFi-native spending products, the health of anchor protocols like Jupiter has downstream effects on liquidity, swap efficiency, and user confidence.
FAQ
What is Jupiter's Net-Zero Emissions proposal? It is a governance proposal called "Going Green" that would eliminate all net-new JUP token emissions for 2026 by postponing the Jupuary airdrop, pausing team vesting, and hedging Mercurial stakeholder sell pressure through buybacks.
What happens to the 700 million Jupuary tokens? They would be returned to a Community Cold Multisig wallet, not burned. User snapshots are preserved, and a future DAO vote would be required to distribute them.
When does the DAO vote happen? Voting is scheduled to begin on February 17, 2026, following a community townhall on February 16 at 3:30 PM UTC.
How much has Jupiter already bought back? Jupiter has completed over $70 million in open-market buybacks during 2025 and burned 3 billion JUP tokens from total supply.
Does this affect the Jupiter Global card? The proposal targets token emissions, not product development. The Jupiter Global card and DEX aggregator products continue to operate independently of the token distribution schedule.
Overview
Jupiter is asking its DAO to approve the most aggressive supply-side intervention in Solana DeFi history. The "Going Green" proposal would freeze all three sources of new JUP emissions: the 700 million token Jupuary airdrop, team vesting unlocks, and Mercurial stakeholder allocations. Combined with $70 million in existing buybacks and 3 billion tokens already burned, this would effectively set JUP's net new supply to zero for 2026. The community is divided between those who see it as responsible stewardship during a bear market and those who view it as breaking promises made to participants. The DAO votes on February 17.
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