As we know, ASR rewards have previously been distributed on a per-vote basis. In past rounds, this allowed compounding — for example, if I started with 1,000 JUP in Q1 and received 100 JUP in rewards, I could stake 1,100 JUP in Q2, effectively compounding my returns.
However, this quarter introduces a change: rewards are now distributed based on staking duration (time-weighted). Under this system, the timing of reward distribution becomes critical. For instance, if rewards are not distributed on October 1st but instead on October 25th, then the 100 JUP reward I should receive will only contribute 6 JUP (instead of the full 10 JUP) toward the next ASR round. This is because I would miss out on nearly a month of staking time for that reward.
This change effectively reduces the compounding effect for participants and could impact long-term incentives.
My question is: Is the Jupiter team considering a mechanism or adjustment to ensure that delayed reward distribution does not disadvantage stakers under the new time-weighted system? If so, what solutions are being discussed?
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The reality is voting algorithm really help a lot to easily determine someone returns after quarters, I think reward will be calculated within if users stake within three full months or check wether wallet stake for complete 90days maybe total percentage of jup will be allocated to particular day or each day.
The reward pattern is based on long weighted stakes, if you stake within the three months this means you will get more rewards to other stakers with just a month stake depending on the rewards claiming date what matters is period you staked.
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@Jupumut Woah, that example of losing 40% of potential compounding just because of timing really shows how small mechanics do indeed carry huge structural weight.
Which makes me wonder…if compounding fundamentally depends on perfectly timed distributions, doesn’t that indicate a structural design flaw…that would snowball into systemic failure?
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With the new time-weighted system, delayed distributions may reduce compounding for stakers. To address this, we’re considering backdating rewards to count as staked from the start and batching distributions at the beginning of each ASR round for equal starting points
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Umm @Hope_stack are you working with the team on this…or it it just an idea?
Because I have a few follow-up questions…just to make sure I understand:
→ If rewards are backdated to count as staked from the start and distributions are batched at the beginning of each ASR round, would that fully restore the compounding effect for all participants, regardless of their individual staking timing?
→ And in terms of implementation, is this process fully automated and verified to avoid errors or delays that could still create subtle disparities between stakers?
→ Also, how will incremental rewards accrued mid-round be handled? Will they also be backdated, or only the batch at the start?
Would it be possible to share a simple example of how a typical staker’s rewards would now compound under this model compared to the previous system?