Increase the Litterbox Buyback allocation from 50% to 70%

Jupiter DAO $JUP
, ,
1

I’m sharing this proposal to gather feedback from the community before submitting an official governance vote.

Overview

I propose increasing the share of protocol fees allocated to the Litterbox from 50% to 70% in order to strengthen the deflationary impact of the JUP token while still preserving sufficient resources for growth and development.

Background

Since the Net-Zero Emissions vote in February 2026, Jupiter has significantly improved its tokenomics model. Currently, 50% of protocol fees are allocated to the Litterbox Trust for JUP buybacks, while the remaining 50% funds development, operations, incentives, and ecosystem growth.

In my opinion, the buyback mechanism could become even more effective if the purchased JUP were burned directly instead of being held in the Litterbox treasury. Direct burns could help reduce volatility and minimize sharp price movements often associated with burn announcements.

Projects such as Hyperliquid (HYPE) have shown that allocating a larger percentage of protocol revenue to buybacks can create stronger deflationary pressure and positively influence market sentiment and token value.

Proposal

Update the protocol fee distribution as follows:

  • 70% → Litterbox Trust (buyback & burn)

  • 30% → Development, operations, incentives, and treasury

The new allocation would become effective 30 days after approval.

Rationale

  • Significantly strengthen the deflationary mechanics of the JUP token.

  • Better reward long-term holders and stakers.

  • Jupiter already has a strong and diversified product ecosystem (Swap, Lend, Perps, JupUSD, Card, etc.), which should allow the protocol to redirect an additional 20% toward buybacks without materially impacting long-term growth.

  • Hyperliquid provides a strong example of how a more aggressive buyback strategy can positively affect token price performance and overall community sentiment.

Benefits

  • Increased buying pressure and reduced circulating supply.

  • Strong signal to the market that Jupiter prioritizes long-term holders.

  • Potential long-term appreciation of the JUP token value.