Jupiter, the Solana-based decentralized exchange, has made significant adjustments to its token distribution strategy, with new measures aimed at preventing airdrop tokens from being claimed by opportunistic farmers.
On Sunday, the governing community of Jupiter approved a highly anticipated vote, authorizing two separate token incentives worth $860 million each over the next two years. This decision marks a pivotal shift in the dynamics of the JUP token.
The proposal was part of the second round of the “Jupuary” vote, an annual event where JUP tokens are distributed to users based on their interactions with the protocol in the preceding year. The original vote failed to receive sufficient community support, prompting the revised version to be presented. The changes to the distribution plan include enhanced criteria to ensure the tokens are directed to legitimate, engaged users rather than those who participate solely for the rewards.
“Every effort must be made to ensure JUP is allocated to the right people—those with the potential to be long-term contributors, not farmers or users who are overly focused on a small group,” explained Jupiter founder “meow” in a proposal from November. “A portion of the token allocation will be used to incentivize users to hold, buy, and participate in governance throughout the year.”
“We are putting a strong emphasis on rewarding real users, using factors such as actual holdings, participation, and consistency of usage. Unlike the first Jupuary, bots will be specifically excluded from this airdrop,” meow added.
A snapshot of eligible users was taken in November, with a link to check eligibility to be made available later this month. The airdrop is scheduled for next month.
At the same time, JUP prices have fallen 7% over the last 24 hours, reflecting the broader downturn in the cryptocurrency market.