Jupiter Exchange, a leading Solana-based decentralized exchange aggregator, is facing significant community criticism after implementing a controversial requirement for users to submit their wallet seed phrases to claim ASR (Airdrop, Staking, Rewards) tokens for Q4 staking activities. The platform launched its ASR rewards program, mandating that users export their seed phrases into the Jupiter wallet to claim rewards via mobile or desktop applications.
This security demand has sparked widespread concern and pushback from the community, with many users arguing that forcing seed phrase exports for relatively small rewards creates serious safety vulnerabilities. Critics highlighted the risk of total loss if malicious actors gain access to accounts through compromised seed phrases.
In response to the backlash, Jupiter defended the measure as necessary to ensure fair reward distribution and prevent manipulation. However, the exchange has since announced plans to roll out an alternative claiming method within the coming weeks that will allow users to claim ASR rewards from other wallets without submitting seed phrases.
The controversy emerges during Jupiter's annual "Jupuary" airdrop event, which the exchange has hosted every January since 2024 to attract new users and retain existing ones. For the January 2026 distribution, the ecosystem planned an initial allocation of 200 million JUP tokens—down significantly from the originally planned 700 million tokens due to community concerns about dilution.
The revision followed a community vote prompted by the aftermath of the 2025 Jupuary event, where widespread token sales by new participants caused JUP's price to crash significantly. The 2026 allocation reserves 170 million tokens for fee-paying users and 30 million for stakers, with an additional 200 million JUP tokens set aside as a bonus pool for holding and staking throughout 2026 to discourage selling pressure.
Despite these developments and the launch of two major new products—Jupiter Global and Ecosystem Explorer—JUP's price has struggled, currently trading at approximately $0.1994. This represents a 90.24% decline from its all-time high of $2.04 achieved two years ago. The token ranks 74th by market capitalization at $648 million, with spot outflows reaching $1.65 million in the week ending January 26, 2026.
