Increase the Litterbox Buyback allocation from 50% to 70%

Jupiter DAO $JUP
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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.

6 Likes
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I completely agree. Yes, I would happily support this.

6 Likes
3

i can not understand what for is not an active proposal.hyperliquid model and asterdex now is the only way to make real value for the token ,The Problem: Dilution is Outpacing Buybacks While the Jupiter ecosystem continues to thrive as a leading DeFi platform, the token’s value proposition is suffering due to excessive inflation. A 20% staking inflation rate is simply barbaric for a token with our market positioning. Unfortunately, this high inflation means our current buyback efforts have effectively failed to preserve or increase value.

As long-term holders, we do not want to constantly receive “more JUP” just to watch its fundamental value dilute day by day. The sheer volume of new tokens entering circulation heavily outweighs the buyback pressure. We prefer less inflation and a stronger price performance per token. We want the JUP we already hold to be worth more, rather than holding a larger quantity of a progressively devalued asset.

Proposed Solutions

  1. Lower Staking Inflation to 8%: Drastically reduce the staking reward percentage from its current ~20% to a fixed, sustainable 8%. This will immediately stem the bleeding caused by token dilution while still providing a reasonable incentive for governance participation.

  2. 70% Buyback Allocation: Increase the share of protocol fees sent to the buyback mechanism (Litterbox) to 70%.

  3. Direct Burn Mechanism: Instead of just accumulating tokens or recirculating them into the DAO treasury, these bought-back tokens should be directly and permanently burned. This will enforce true deflationary mechanics.

Conclusion For Jupiter to cement itself as the ultimate DeFi superapp, its tokenomics must reward long-term conviction, not punish it with dilution. Adopting a high-revenue, direct buyback-and-burn model while slashing inflation to 8% will signal to the market that the DAO prioritizes real value accrual for $JUP holders.

I invite the community to discuss this proposal and share their thoughts below. Let’s make JUP scarce and valuable.

3 Likes
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This is exactly what $JUP and its long-term holders & stakers need.

Inflation is putting continuous pressure on $JUP. Increasing protocol buybacks to 70% and burning the purchased tokens immediately would strengthen the tokenomics, reduce circulating supply, and better align value with long-term supporters.

Let’s move this proposal to a live DAO vote as soon as possible.

2 Likes