MidCrvCapital’s Take on Jupiter Exchange’s $JUP Token Challenges

On March 31, 2025, at 21:01 UTC, MidCrvCapital shared a detailed critique on X about their experience with Jupiter Exchange and its $JUP token. The user revealed a $63k loss in their $JUP holdings over two months, pointing to a 30-day lock-up period as a major pain point. This post sparked a thread with community feedback, suggestions, and responses from Jupiter’s team, shedding light on the token’s governance and value creation challenges.

The Core Issues with $JUP Token Strategy

MidCrvCapital outlined several concerns about $JUP, a governance token for Jupiter Exchange, a decentralized platform on the Solana blockchain. The 30-day lock-up period for staking—where tokens are locked to participate in governance—has led to significant price drops, or "cliffs," when the lock-up ends. This creates opportunities for short-term holders to game the system, selling off tokens right after the lock-up, which impacts long-term holders like MidCrvCapital.

They also highlighted "Jupuary," an event likely tied to token emissions (the release of new tokens into circulation). According to Tokenomist.ai, emissions can heavily influence a token’s supply and price. MidCrvCapital suggested canceling next year’s Jupuary to avoid sudden token dumps and instead use those tokens to fund Active Staking Rewards (ASR), a mechanism on Solana that rewards stakers for participating in network validation, as explained on Solana’s staking page.

Proposed Solutions for Token Value Creation

MidCrvCapital didn’t just point out problems—they offered actionable ideas to improve $JUP’s value:

• Reduce Emissions: Cancel Jupuary and redirect those tokens to ASR for more predictable rewards.
• Adjust Staking Mechanics: Make staking and ASR rolling instead of quarterly to avoid price cliffs.
• Shift Buybacks to Revenue Sharing: Instead of buying back tokens, distribute platform revenue to stakers in stablecoins like USDC or $JUP, creating an income stream for long-term holders.
• Flexible Lock-Up Options: Offer longer lock-up periods with increased voting power to incentivize commitment.
• Explore Liquid Staking: Allow staked tokens to remain liquid, meaning users can trade or use them while still earning rewards, a concept also discussed in Solana’s ecosystem.

They tagged weremeow, a Jupiter team member, asking if Q2 2025 could focus on token value creation and community-driven proposals.

Community and Team Responses

The thread gained traction, with users like RiceRacc00n expressing frustration over $JUP’s price action, comparing it to a memecoin—a token driven by hype rather than utility. MidCrvCapital replied, emphasizing that without meaningful governance, $JUP risks becoming just that: a "repackaged memecoin."

Kash, likely a Jupiter team member, provided a detailed response. They clarified that ASR itself is a form of emissions, so increasing ASR while reducing emissions isn’t straightforward. They also explained that staking cliffs are intentional to ensure only committed stakers participate in governance. However, they were open to revisiting the token accumulation plan and exploring varied staking options in the long term, though simplicity remains a priority for now.

Kash shared images of recent community votes, showing active participation in proposals like budget approvals and logo updates:

They also posted a photo from Catstanbul, Jupiter’s first community conference held in Istanbul on January 25-26, 2025, as noted on Catstanbul’s official page:

Finally, a screenshot of Kash’s $JUP holdings—77,317 tokens, 100% staked—highlighted their commitment:

MidCrvCapital’s Commitment to Jupiter’s Future

MidCrvCapital responded to Kash, appreciating the feedback and doubling down on their suggestions. They proposed flipping "the litter box" (likely a playful term for a token pool) to ASR rewards paid in Solana (SOL) or USDC, and voting on measures to increase platform revenue, like adjusting fees. They also reiterated their long-term commitment, mentioning their attendance at Catstanbul and weekly participation in Jupiter’s planetary calls.

Other users chimed in with mixed reactions. HunFter_Malu worried that community proposals could lead to chaos, to which MidCrvCapital countered, “What’s the point of a DAO if community opinion doesn’t matter?”—highlighting the essence of decentralized governance. jadoodotsol encouraged resilience, to which MidCrvCapital affirmed their belief in $JUP but stressed the importance of discourse.

Why This Thread Matters for Jupiter and $JUP Holders

This X thread underscores a critical moment for Jupiter Exchange. With $JUP’s price struggling and community members like MidCrvCapital pushing for change, the project faces a choice: evolve its tokenomics to prioritize long-term value or risk alienating its most dedicated supporters. The discussion also highlights the power of decentralized autonomous organizations (DAOs), where community voices can shape a project’s future.

For $JUP holders, this thread is a call to action—get involved, vote on proposals, and push for changes that align with long-term goals. As Jupiter continues to grow, especially after events like Catstanbul, balancing simplicity for new users with sophisticated tokenomics for veterans will be key to its success.