50% of the revenue is used for buyback, what does Jupiter's new tokenomics imply for the DeFi space?

Recently, Jupiter announced a plan to implement a 50% protocol fee buyback of $JUP and lock it for 3 years. Combined with recent strategic moves, this heralds a larger blueprint unfolding: the creation of a true Jupiverse. From its initial DEX aggregation platform to now building a comprehensive blockchain infrastructure, Jupiter is rapidly completing its evolution. Transparent financial reporting, efficient team collaboration, and ongoing community building have kept Jupiter consistently ahead in the fiercely competitive DeFi race. And now, this platform that has always shared revenue with the market is preparing to lead users into a broader future.

The Rise of the Strongest Solana Dex—Jupiter

Since its launch in the Solana ecosystem in 2021, it has rapidly grown to become a prominent DEX. Initially, its core product kernel integrated multiple liquidity sources to provide users with the best trading experience. Although during the DeFi Summer, various new technologies and powerful products emerged from time to time. However, Jupiter, with its innovative routing algorithm, effectively addressed slippage issues, and its small yet agile team still gained a part of the Solana DeFi project market share.

By 2023, public data shows that it has become the largest DEX in the Solana ecosystem, occupying over 50% of on-chain token swap volume. Its clean interface design, convenient cross-chain support, and precise grasp of institutional trading needs have made Jupiter the preferred platform for professional players. To date, $JUP's market value is second only to the veteran DeFi leader Uniswap, and a new DeFi overlord has emerged.

Prosper Together in Good Times and Support Each Other in Difficult Times: The Power of Community-Driven

When the community's voice cannot reach the ears of "certain" CEX, the DEX community is particularly valuable.

Since its inception, Jupiter has always seen community consensus as the core driving force of project success. Co-founder Meow has emphasized in interviews and on Twitter multiple times that the token's value comes from the community's consensus and support. He pointed out that a true community is operated and maintained by users together, and only through active participation and feedback from users can the community become strong.

To build a vibrant and forward-thinking community, Jupiter has made a lot of efforts, establishing dedicated working groups on multiple media channels, including Twitter, Discord, the website, YouTube, and Reddit (now closed). Team members operate these channels together with community members to ensure timely information dissemination and interaction.

Led by the strongest social content team Uplink at Jupiter

Every week, Jupiter hosts a "Planetary Meeting" live on YouTube and Twitter, during which team members and Uplink share project updates and ecosystem dynamics across various platforms. The viewership of each live session usually exceeds 4000 views, with Twitter views reaching tens of thousands. The live chat often features Jupiter community-specific "crypto language" such as J4J, 555, PPP, adding a unique cultural flavor reminiscent of the early NFT Summer community.

In terms of community governance, Jupiter utilizes a DAO mechanism called "vote.jup" to allow members to participate in token allocation and project decisions. Everything from the background of the mobile app to the use of the project's token is collectively decided by the community. For instance, the budget proposal voting rate of the Uplink working group exceeds 50%, with the majority of proposals receiving over 70% approval votes and abstention votes remaining below 15%, showcasing the active engagement and support of community members in the project's development.

Jupiter has also introduced the PPP (Player Pump Player) concept, advocating for mutual support among community members to jointly build a long-term sustainable ecosystem. Meow elaborated on the concept of PPP during the Planetary Meeting, attracting significant attention and participation from community members.

Through these initiatives, Jupiter has successfully established a robust community where members actively engage in all aspects of the project, collectively driving its development and value appreciation.

In January of this year, Jupiter announced a new round of airdrop plan called Jupuary2025 for users, serving as the first New Year gift to on-chain players. Jupiter's willingness to share its gains with the market from the beginning, coupled with ample credibility, has always garnered strong support to help it navigate through various criticisms, such as last year's failed partnership with Irene Zhao and the recent Twitter hack, with a significant user base consistently maintaining trust in the project.

Of course, trust is mutual, and Jupiter's excellent crisis PR and rapid response handling have consistently minimized the negative impact whenever they encounter such incidents.

Using the recent Twitter hack as an example, after the official account tweeted a CA early in the morning, Jupiter promptly responded and engaged in a back-and-forth battle with the hacker in terms of tweeting and deleting tweets. Subsequently, upon discovering that the login IP was traced back to an employee's phone in Singapore due to a domestic incident in the U.S., and considering the recent incidents of cryptocurrency professionals being kidnapped, Meow first expressed their concerns on Twitter, which were later alleviated upon confirming that everything was in order. Jupiter also published a comprehensive investigation report on Twitter, reassuring the community of the security of assets and clarifying that the incident was not due to any oversight on the project's part. This responsible handling of the situation prevented them from facing significant public backlash. In an industry that lacks regulation, where even a "pretend" hack and subsequent CA issuance may not be scrutinized, this responsible approach is indeed worth learning for certain individuals and projects.

Jupiverse's Vertical Integration

With the foundation of community trust laid, Jupiter began constructing skyscrapers.

Entering the year 2024, Jupiter officially embarked on broader integration through a series of strategic acquisitions, further solidifying its market position. In April, Jupiter acquired the mobile wallet Ultimate and its team to support its planned Jupiter Mobile application. In September, Jupiter acquired the blockchain explorer SolanaFM, enhancing its on-chain data analysis capabilities. Also in September, Jupiter acquired the transaction analytics platform Coinhall, boosting its market data analysis capabilities. In January 2025, Jupiter announced the acquisition of the on-chain portfolio tracker Sonarwatch, further enhancing its portfolio management services.

Furthermore, Jupiter also acquired a majority stake in the mobile-oriented Meme trading platform Moonshot, expanding its influence in the Meme coin trading sector. The token launch technology stack "LFG," developed by the original Jupiter team in collaboration with Meteora, integrating emission, price curve, and distribution channels, was validated in the $TRUMP transaction initiated by the Trump family.

The issuance of TRUMP utilized the same LFG technology stack as JUP issuance, including the DLMM pool, ILM design, and close integration with Jupiter. The combination of Jupiter and Meteora provides users with an excellent trading experience, and the strong association between Moonshot and $Trump led to an astounding $400 million in trading volume within the first 12 hours post-token release, breaking fiat entry records and attracting over 200,000 new users.

From now on, the frontend interacts with Jupiter through Moonshot and Jupiter Mobile, while the backend liquidity pool is provided by Meteora. The entire process of token generation, liquidity provision, and purchasing is fully validated, accepting the maximum and fastest single-token transaction volume and frequency currently possible. The 12-month acquisition has enabled Jupiter to build a self-contained collection of DeFi services, allowing users to complete the entire process from deposit, trading to yield optimization within this ecosystem, becoming the most powerful trading vertical combination to date.

After an African country issued the $CAR token through Pumpfun, Jupiter's co-founder Meow expressed on Twitter, "We need to launch tokens in a better way; this war fog is insane and very bad for the industry." It is unclear whether this is due to regret for their "Ape Pro" lacking its natural influence or a genuine discussion of the problems the Pumpfun launch mode has caused for the industry.

In any case, Jupiter is still relentlessly developing its launch platform. From the Irene Zhao era to Trump, although each token launch has caused a sensation, there has been no continuity. Following this, Jupiter has brought in ElizaOs and Virtual Protocol to form the Magic Fund, incentivizing AI projects launched on its platform. It has also established a deep collaboration with Virtual, who has just migrated to Solana, and the effects of the series of activities are also significant. Jupiter's combination punch poses a major threat to the Pumpfun+Raydium combination, which has hardly encountered any opponents.

Aggregate Everything

Furthermore, Jupiter has clearly stated its next plan: to aggregate everything!

Just days after completing the Trump launch, besides disclosing the majority stake acquisition completed in Moonshot, it also announced a full-chain network, Jupnet. Through Dove, a "decentralized oracle," and the Omnichain distributed ledger network, it aims to aggregate all cryptocurrencies on-chain into a decentralized ledger to maximize user and developer convenience. It also launched ADI, "Aggregated Decentralized Identity," describing a fully on-chain identity and authentication system that will transform the experience of interacting with crypto using wallets, integrating UX and DX back into the user's familiar account interface.

The ultimate goal of Jupiter is to create a future blockchain use case where a single account can access all chains, all currencies, and all commodities, a scenario lovingly referred to by the Jup community as "1A3C". If Jupiter can achieve all of the above, all processes related to an asset will be consolidated, allowing for a single interface to encompass most functionalities of blockchain projects, including launchpad, AMM, trading tools, cross-chain bridges, and more.

From starting with a DEX aggregator to building the vision of 1A3C, Jupiter has demonstrated ambitions far beyond those of a traditional DEX. Through continuous technological innovation, precise market positioning, and a focus on the community, Jupiter is positioning itself as the infrastructure to connect all-chain assets. This is not just an evolution of a trading platform but a depiction of a more open, interconnected future for Web3. Jupiter may indeed redefine the way assets flow in the blockchain world.