Following the Helium (HNT) project, discussions are underway to halt automatic token buybacks in the Jupiter (JUP) ecosystem as well.
Jupiter founder Siong Ong questioned the effectiveness of the JUP buyback program in a social media post and asked for the community’s opinion.
Siong Ong said more than $70 million was spent on JUP’s share buybacks last year, but no significant impact on the price was observed. Mr. Ong suggested that it could be more productive to use these resources more effectively as a growth incentive for existing and new users, and asked the community for their opinion on suspending buybacks.
Regarding this discussion, notable comments were also received from the Solana camp. Anatoly Yakovenko, co-founder of Solana, the network that Jupiter works on, suggested to the Jupiter Exchange team a different approach to capital management than stock buybacks. Yakovenko argued that a model where profits are held on the balance sheet as protocol assets that will be in demand in the future, and where users can earn revenue by locking and staking tokens in exchange for these assets, is more sustainable. According to Yakovenko, as the balance sheet grows, the total rights of staking users to the protocol may also increase.
*This is not investment advice.
