Proposal for Jup DAO Alliance: Huma Finance

AG42 · May 16, 2025, 9:53pm

Hey everyone, here’s an extended summary of the X Spaces with Huma Finance.

Proposal Background & Intent

Erbil’s Summary:

The idea for the partnership originated at Catstanbul, where Huma founders connected with Jupiter community members and the core team.
Huma is a PayFi protocol originally built on the EVM. With Huma 2.0, they relaunched exclusively on Solana, citing technical fit and shared values with the Jupiter ecosystem.
Jupiter was a key partner in launching Huma 2.0, helping bootstrap traction for their LP tokens and ecosystem integration.

Core Belief: Huma isn’t just launching a token—they’re building long-term infrastructure and want to align with like-minded communities.

Proposal Details

The proposal includes two key components:

Presale for JUP Stakers
- 1% of total supply (10 billion tokens) available exclusively to JUP stakers
- $75 million valuation (FDV) - over 50% discount to Series A valuation
- 3-month lock-up period
DAO-to-DAO Treasury Swap
- $250,000 worth of tokens at same presale valuation
- Intended as a long-term partnership commitment

Token Utility

The token will feature:

Staking rewards
Buyback burn mechanisms
Governance
Private access to protocol features

Tokenomics Overview

Total Supply: 10 billion HUMA tokens
Utilities: Staking rewards, governance, buybacks, access to protocol features
Governance Utility: VE model
Initial Circulating Supply: 18%
Initial Airdrop: 5%
Ecosystem Allocation: 38% for airdrops, LPs, content creators, etc.
Team & Investor Lockups: 1-year cliff + 3-year vesting

Important Disclosures

Key points of transparency:

This is not financial advice - participation in presale is optional
Meow and Siong have invested in Huma Finance’s previous round at >2x this valuation
Regular investors receive 1-year lockup + 3-year vesting
Community terms are more favorable than both team and previous investors

Partnership Vision

The collaboration aims to achieve:

Alignment of community interests
Focus on permissionless systems
Promotion of global inclusion
Development of real-world utility

Community Q&A Session on Huma Finance Proposal

Question 1: Staking Rewards During Lock-up Period

Dementes asked about staking rewards during the 3-month lock-up period. The response clarified that participants won’t miss out on incentives since the staking reward systems haven’t been published yet. Once tokens unlock after three months, participants can join the staking program when it launches. This was noted as a point to add to the FAQ section of the proposal.

Question 2: Minimum Staking Requirements

Jamie asked about minimum requirements. The team confirmed there is no minimum threshold - allocation will be proportional to staked amount, with no floor or cutoff. The 1% total supply will be distributed based on relative stake sizes.

Question 3: Allocation Mathematics

The exact allocation will depend on total participation. For example:

If only 10 million JUP worth of stake participates, individual allocations will be larger
If 100 million JUP worth of stake participates, individual allocations will be smaller
Your allocation is proportional to your stake amount

Question 4: Feathers Program Relationship

Clarification was provided that this presale opportunity is completely separate from the Feathers program. Participants will receive benefits in two ways:

As JUP stakers through this presale
Through previously earned Feathers rewards

Question 5: Snapshot and Participation

Maria asked about future staker participation and snapshot dates

Snapshot will be taken at the end of the vote period
Anyone who stakes and votes during the voting period can participate
Pre-sale vault will open soon after vote conclusion (probably within days)
TGE Timeline: Expected within next 1-2 weeks after vote

Question 6: Participation Requirements

Question raised about minimum staking requirements for 700,000+ JUP stakers

CWG confirmed no minimum threshold or cutoff
Decision made against implementing cutoffs due to practicality concerns
All stakers can participate regardless of stake size

Question 7: DAO-to-DAO Treasury Swap Details

iSAK asked about the 250k token swap between Jupiter and Huma

Intended as long-term alignment between communities
Huma confirmed they will hold their Jupiter tokens
Allows both DAOs to have governance participation in each other’s protocols

Important Disclosures:

Erbil disclosed being a significant Jupiter user and staker

Will not participate in voting or LFG to maintain fairness
Emphasized focus on community benefit

Question 8: Content Creation Incentives

A community member asked about Part C of the proposal (Jupiter Community Activation) regarding the Jupiter community helping with Huma’s launch through memes, threads, and spaces. Specifically, they inquired whether Jupiter DAO would use the 250k worth of HUMA tokens to incentivize community content creation.

Response from Jupiter DAO:

No direct incentives will be provided from Jupiter DAO’s side for Huma-related content
Support will occur naturally through regular partnership activities
Focus is on community collaboration rather than team-directed efforts

Response from Huma team:

Huma will provide incentives for content creators
Uses Kaito leaderboard to track content performance
Higher rankings lead to better rewards

Question 9: Tokenomics Overview

Richard provided detailed tokenomics information:

Total token supply: $10 billion
Initial airdrop: 5%
Ecosystem allocation: 38% (distributed over many months)
Day one floating supply: 18%
Team and investor tokens: 1-year lock, followed by 3-year vesting

Token utility features:

VE model implementation
Governance participation
Protocol profit sharing
Priority access to product features

Question 10: PST Liquidity Concerns

Maria raised questions about PST token liquidity on Jupiter. Richard explained:

Current capital utilization is over 98%
Pool cap increases are gradual ($10-20M at a time)
Previous pool caps filled within one day
Limited supply creates natural price premium

Additional context:

Protocol aims for organic growth and balanced supply-demand
Focus on maintaining sustainable double-digit yields
Market expected to find natural balance point

Question 11: Content Creator Tracking

Sleeky asked about content creation tracking:

Primary tracking through Kaito leaderboard
Additional manual tracking for missed quality content
Focus on consistent, high-quality creators

Question 12: Huma DAO Governance & Rewards

Dinesh asked about Huma’s governance model and rewards structure, particularly regarding benefits from participating in the maxi pool.