Decentralized finance (DeFi) super-app Jupiter, built on Solana, is grappling with a significant strategic decision: whether to discontinue its JUP token buyback program. This consideration stems from a perceived lack of impact and a desire to reallocate resources towards more effective growth initiatives.
The Buyback Conundrum
Jupiter’s Co-Founder and CTO, Siong Ong, publicly voiced concerns that the substantial $70 million invested in JUP buybacks last year yielded minimal positive price movement, deeming it a "waste" of resources. Ong, echoing sentiments from other blockchain founders like Helium's Amir Haleem, advocates redirecting these funds towards user acquisition and growth incentives instead. Despite an initial 300% rally after the program's launch in February 2025, JUP's price subsequently plummeted by 88% to new yearly lows, challenging the bullish narrative often associated with buybacks and underscoring their limited long-term effectiveness in this specific case.
Community Perspectives and Proposed Alternatives
The proposal to halt buybacks has sparked a robust debate within the JUP community. While some critics support discontinuing the program, pointing to similar failures in other protocols, a vocal segment proposes alternative strategies. Many advocate for revenue sharing with JUP stakers, arguing that distributing protocol earnings could significantly boost staking yields—with projections suggesting up to 43% dividend yield or 25% APY. Proponents believe such an incentive would not only provide attractive passive income but also create strong demand, potentially driving up the token's value and addressing "dumping pressure" by tying the token more directly to the protocol's success. However, Ong questions how such an allocation would sustain product growth if all revenue were directed to staking rewards. The path forward remains uncertain as Jupiter, a protocol with impressive cumulative revenue of $369 million, navigates this critical juncture.
