Jupiter, the Solana-based decentralized exchange aggregator, has submitted a pivotal governance proposal to its Decentralized Autonomous Organization (DAO) aiming to drastically reduce the net emissions of its native $JUP token to near zero. The proposal, introduced on February 13, 2026, seeks to overhaul the project's tokenomics by addressing the primary sources of new supply that could exert selling pressure on the market.
The plan targets three major emission channels. First, it proposes an indefinite pause on all token releases from the Team Reserve. Instead of these unlocked tokens being sold on the open market, the Jupiter treasury would directly absorb any sales. Second, the proposal would postpone the highly anticipated "Jupuary" airdrop, which was slated to distribute approximately 700 million JUP tokens. If the plan passes, these tokens would be returned to a community multisig wallet, with the snapshot of eligible users preserved for a future date.
Third, the plan addresses tokens tied to Mercurial stakeholders. Jupiter intends to accelerate this vesting schedule while having the treasury purchase tokens to offset any resulting selling, effectively neutralizing new supply entering the market.
The team stated the move is a direct response to concerns from token holders about continuous supply inflation and its potential to pressure token prices. The proposal argues that Jupiter has already taken significant steps, including burning 3 billion tokens, locking founder and team allocations for extended periods, and directing half of all on-chain revenue to buybacks. This new plan is positioned as a further measure to align the interests of the team, users, and investors and support the token's long-term value, especially in weak market conditions.
The final decision now rests with the DAO. Token holders will vote between two options: one that proceeds with the original airdrop plan, and another that implements the delayed airdrop and paused emissions. If the airdrop option wins, distributions will begin within weeks. If the pause option prevails, the new near-zero emission plan will take effect. The team has committed to honoring the DAO's decision, acknowledging that delaying the airdrop may disappoint some community members.
If approved, the proposal would effectively remove most new JUP token supply for 2026, potentially reducing sell-side pressure in the short term but also delaying rewards for active users. The vote is expected to spark significant debate within the Jupiter community over the trade-offs between immediate user incentives and long-term token stability.
