Jupiter Exchange has come under fire from the community after asking users to submit a seed phrase to their Jupiter wallet in order to receive ASR rewards for their staking activity during the fourth quarter.
Jupiter, a Solana-based decentralized crypto exchange aggregator, has shocked the community by raising security concerns regarding wallet seed phrases. DEX launched ASR rewards for stakers in Q4. This required users to export their seed phrases to Jupiter wallets to receive rewards on mobile and desktop. This requirement sparked widespread concern as community members opposed the rule, citing serious safety concerns around sending seed phrases.
Jupiter Exchange raises safety wallet concerns for Web3 users
🚨New: Community backlash ensued after @JupiterExchange launched ASR rewards for stakers in Q4, requiring users to import seed phrases into Jupiter wallets to claim via mobile or desktop. Some users say it’s not safe to force seed phrase export for small rewards… pic.twitter.com/owxTFG2xOm
— SolanaFloor (@SolanaFloor) January 31, 2026
Jupiter defended the requirement, saying the measure was necessary to ensure fair distribution of rewards and prevent manipulation. However, the discussion centers on the potential for exploitation and the burden on users and long-term holders who could lose everything if a malicious attacker gains access to their account. According to Solana Floor, the decentralized exchange responded to the criticism and said it will introduce an alternative method in the coming weeks for users to claim ASR rewards from other wallets.
Jupiter has hosted an airdrop event, Jupuary, every January since 2024 as part of its internal efforts to attract new users and retain existing users. In 2024, decentralized exchanges distributed $1 billion $JUP Over $1 billion worth of tokens will be sent to over 1 million cryptocurrency wallets. In 2025, the exchange hosted its second airdrop event, distributing 700 million tokens to its loyal users and stakers.
This year’s ecosystem is planned The initial distribution amount is 200 million $JUP 170 million tokens will be allocated to paying users and 30 million to stakers. DEX also announced that it would set aside $200 million $JUP Tokens as a bonus pool to hold and stake airdrops throughout 2026.
This move was aimed at encouraging more community members to hold as many tokens as possible and thwarting the selling pressure that typically follows airdrop events. The exchange also announced that it had secured $300 million. $JUP Tokens for Jupnet incentives. The total amount of ASR Rewards token distribution events in January 2026 reached 700 million tokens. The exchange also announced, $JUP It emphasized that stakers will be rewarded based on time-weighted stakes, and the eligibility period for paying customers will end in January 2026.
Jupiter Revises Token Airdrop Supply From 700 Million Tokens To 200 Million Tokens
However, in November 2025, Cryptopolitan reported Jupiter announced that it has revised down its airdrop to Jupiter due to dilution concerns. This decision was made by a vote of community members following what happened during the previous Jupurely event in 2025.
The January 2025 event decentralized the ecosystem. $JUP Distribute tokens to everyone, including new community members who had no intention of becoming part of the community and its ecosystem in the long term. As a result, many of these new participants sold their tokens and $JUPprice will plummet.
The new revision has reserved 200 million tokens out of the 700 million scheduled for the January 2026 Jupuary event. The publication also noted that airdrop eligibility will change according to the project’s DAO. The new revision allocates 25 million $JUP The remaining 175 million is reserved for users who perform paid activities in the Jupiter ecosystem.
According to data From CoinMarketCap, Jupiter’s native crypto asset $JUP With a market capitalization of $648 million and a 24-hour trading volume of $57.22 million, it ranks 74th among the largest cryptocurrencies. The crypto asset is trading at $0.1994, down 90.24% from its all-time high of $2.04 set two years ago.
