I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. Today I will be looking at the recent announcement for Jupiter founder, which notes that they will be airdropping 1 Billion JUP tokens in late January.
Jupiter - 1 Billion JUP Token Airdrop
A decentralized trading aggregator built on the Solana blockchain, Jupiter, has announced its plans to conduct the airdrop of its JUP token in late January. This is according to Meow, the pseudonymous founder of the protocol. Given the recent surge in decentralized finance (DeFi) activity on the Solana blockchain, which in part has been fuelled by meme coins, the airdrop for JUP tokens will be known as the Jito Airdrop. It has set the stage for Jupiter and with the soaring price of SOL, the token distribution may serve as a litmus test for the sustainability of the altcoin frenzy.
As per the X (formerly Twitter) post above, the founder has emphasised that the protocol is not prioritizing hype or perfect price discovery. Instead they are pushing to experiment with a major token distribution. The airdrop, which has been described as a “high-stress event,” is designed to ensure inclusivity and that "no cats are left behind."
So far there are nearly 1 million Solana wallets which are qualified to receive a portion of the airdrop. The airdrop itself will represent 40% of the total supply of JUP tokens. This is a size of tokens which reflects Jupiter's popularity with traders. The Jupiter protocol operates by routing token buy and sell orders through various on-chain trading venues to identify the best available price. This airdrop will not only stress test the JUP trading infrastructure but also the robustness of the Solana network itself, according to Meow.
“The downsides are obvious – bots are likely to have a field day at the very start (I personally don’t think this is a downside), and the network is likely to be extremely congested at the start, with both claiming and bots hitting the pools early on. In addition, there is very little certainty in how much funds we will have at the end of the stabilization period.”
Meow went on to also announce that an additional 10% of the total JUP supply, another 1 billion tokens, will be reserved for community contributors and grants. This means the 50% of all JUP tokens will eventually be distributed to the Jupiter community, while the remaining 50% of the supply will be managed by the Jupiter team. This will see 20% go to team members, while 20% will serve as a strategic reserve, and a further 10% will act as a liquidity provision, either “mostly or entirely on-chain.”
“This allocation, likely given to the DAO to administer, should give a lot of incentive for the community to participate in initiatives to grow Jupiter, vet projects for the Solana ecosystem, and drive the decentralized meta - all of which are our main objectives.”
Meanwhile the Layer 1 blockchain Solana (SOL) has continued to see impressive gains in the crypto community as it achieved several significant milestones. During the past week the network overtook Ethereum in 7-day stablecoin trading volume for the first time ever. At the time the value of stablecoin transfers on Solana reached a staggering $103 billion, which outperformed all other networks. Ethereum secured the second position with $90.9 billion, with Tron in third with $82.3 billion and BNB Chain taking in fourth position with $14.6 billion.
Solana also managed to outperform Ethereum in NFT trading volume during December 2023. The Solana blockchain hosted trades worth $366.6 million, while Ethereum recorded $353.2 million. However when looking at NFT sales amount over the past 30 days, Solana sales amounted to $329.3 million, which is approximately 5% less than Ethereum’s $345 million during the same period.
Solana also surpassed Ethereum in worldwide web searches, according to Google Trends. All of these milestones capped off a bullish year for Solana and it will hope to surpass more milestones which achieving more success throughout 2024. Jupiter will hope to take advantage of this and have a strong 2024 of its own following the Jito Airdrop.
Have a great day.
CryptoGod-1.
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