Problem
Carrots were promised as part of Jupuary 2025, but have not been fully distributed yet. The primary concern raised against distributing them is potential dilution and short-term sell pressure.
Solution
Use the carrots as a one-time, Long-Term Staking Rewards (LTSR) program that:
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Requires new JUP to be purchased and staked
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Rewards longer commitment with higher weight
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Spreads unlocks over multiple years
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Preserves normal governance voting power
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Avoids immediate market impact
How It Works
Eligibility Window
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Users must purchase and stake new JUP by midnight March 1, 2026 (UTC)
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Stake duration choice: 1 to 4 years
Time Multiplier (Linear)
Time-Weighted Stake = JUP Staked Ă— Time Multiplier
Carrots Distribution Formula
Carrots are distributed when a user’s stake unlocks. Their share of the Carrot Pool is linearly determined based on their Time Weighted Stake relative to the Total Time Weighted Stake of everyone.
(User Time-Weighted Stake / Total Time-Weighted Stake) Ă— Carrots Pool
This ensures:
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No dilution from passive holders
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Rewards go to those who commit capital and time
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Unlocks are naturally staggered over 1–4 years
Governance Rules
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Staked JUP retains normal voting power (not time-weighted)
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As usual, when <30 days remain to unlock, voting power decreases linearly
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No cancel-unstake option (to keep mechanics simple and predictable)
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After unlock, users may claim back their original JUP and their LTSR and restake if they wish
Why This Works
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Addresses dilution concerns
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Requires net new buy pressure
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Incentivizes long-term alignment
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Spreads future unlock risk across years
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Honors the original carrot promise (to incentivize buying and staking of JUP) in a way that strengthens staking, governance, and price stability simultaneously
This turns the carrots from a source of concern and ridicule into a mechanism for long-term alignment and growth.
