Jupiter

Jupiter is a decentralised exchange (DEX) aggregator built on the Solana blockchain. Its primary function is to route token swaps across multiple DEXs within the Solana ecosystem, identifying the most favourable trading paths and pricing for users. This routing process is designed to minimise slippage and optimise execution, similar in purpose to what protocols like 1inch do on Ethereum.

Launched in October 2021, Jupiter began as a swap infrastructure project and has since expanded into a broader decentralised finance (DeFi) protocol. It now includes tools such as limit orders, dollar-cost averaging (DCA), perpetual futures, and a bridge comparison service for cross-chain transfers. Jupiter plays a critical role in the liquidity infrastructure of the Solana DeFi ecosystem and has become one of the most widely used applications in this space. The protocol also supports advanced trading strategies, such as Value Averaging (VA), and has announced plans to launch a yield-bearing stablecoin collateralised by liquid staking tokens (LSTs).

Jupiter is integrated into several products and platforms within the Solana network, including the Backpack wallet. As of early 2024, Jupiter has surpassed major Ethereum-based aggregators in terms of trading volume, highlighting its growing importance in the broader DeFi landscape.

JUP is the native governance token of the Jupiter platform. It is deployed on the Solana blockchain and operates using Solana's SPL token standard. The token was officially launched in January 2024 with an initial circulating supply of approximately 1.35 billion JUP. While the maximum supply was originally set at 10 billion, the community has approved a proposal to reduce the cap to 7 billion tokens.

The token is designed to be the central mechanism through which the Jupiter community governs the platform. JUP also supports staking incentives and may be used for access to additional platform features, including the Jupiter launchpad (LFG). While it does not directly serve as a liquidity provisioning token, it plays a key role in protocol governance and incentive alignment.

The distribution of the token supply is split evenly:

• 50% allocated to the community, largely through airdrops and incentive programmes
• 50% retained by the team, including:
  
  • 20% for team members (with a two-year vesting schedule)
  • 20% for strategic reserves
  • 10% for liquidity provision

Additionally, 2 billion tokens are reserved for future team members, investors and stakeholders, with a minimum lock-up of one year.

The JUP token serves multiple roles within the Jupiter ecosystem:

• Governance

JUP is primarily a governance token. Holders can propose and vote on changes to the protocol, including:

• Allocation of liquidity incentives
• Future JUP issuance schedules
• Strategic ecosystem initiatives
• Listing dispute resolutions
• Grant approvals for developers
• Project selection on the Jupiter launchpad (LFG)

Governance is facilitated through the Jupiter DAO, which is designed to give the community significant influence over the protocol’s direction.

• Staking and Incentives:

Users can stake JUP tokens as part of the Active Staking Rewards (ASR) programme. This scheme distributes JUP and potentially other tokens to stakers who participate in governance. Rewards are typically allocated quarterly, with the amount dependent on the quantity of JUP staked and the user's governance activity.

The unstaking process generally includes a 30-day delay. Some centralised exchanges such as Binance and Gate.io offer JUP staking products, although decentralised staking is more aligned with governance participation.

JUP staking should not be confused with JupSOL, a separate liquid staking token that represents staked SOL on Jupiter.

• Airdrops and Community Allocation:

JUP is distributed through airdrops known as “Jupuary” events. The initial airdrop in January 2024 distributed 1 billion tokens to early users. A second airdrop occurred in January 2025, distributing 700 million tokens across around 2 million eligible wallets. Further airdrops are scheduled for 2025 and 2026, targeting active users, stakers and contributors.

This airdrop strategy is intended to decentralise ownership, promote user engagement and build long-term network effects.

• Access and Utility:

While governance is the token’s primary function, JUP may also be used to:

- Reduce trading fees on the Jupiter platform
- Gain priority access to launchpad projects
- Participate in experimental features or beta products

Future use cases may include expanded functionality within Jupiter’s perpetuals exchange or broader DeFi integrations.