Jupiter DAO has halted voting for the rest of the 12 months following controversy over crew members utilizing their outsized voting energy to affect outcomes
The Jupiter decentralized trade (DEX) has paused governance voting by way of the top of the 12 months, citing a “perpetual FUD cycle that grows with each vote.”
“The present DAO construction isn’t working as supposed. We hear the complaints. We see the breakdown in belief… As a substitute of the DAO, holders, and crew working in cohesion to push the product, platform and group ahead, we’re caught in a unfavorable suggestions loop,” stated Kash Dhanda, “cat-herder” of the decentralized autonomous group (DAO) that governs Jupiter.
Pointing to new merchandise like Jupiter Lend and the brand new Jupiter Cellular onboarding new customers, Dhanda stated, “We should be laser-focused on development.”
The newest FUD, which means worry, uncertainty and doubt, stems from considerations over the Jupiter improvement crew’s use of their giant token allocations for voting on governance proposals.
It has been alleged that their sizable voting energy is getting used to unfairly affect votes, thereby undermining the decentralization of the DAO that governs Jupiter.
“I’m not towards [the] crew having allocation, they’ve labored arduous all these years and [built Jupiter] from scratch, however the issue is their stake is relatively nice by way of influencing the DAO,” stated pseudonymous DAO participant BuddyChaddi within the Jupiter governance discussion board on June 6.
The Jupiter crew was allotted 20% of the ten billion JUP tokens.
The Solana-based DEX has a market capitalization of $1.2 billion, down 37% from a month-to-month excessive of $1.9 billion on Might 27.
Taking a Pause
The pause in DAO voting will give the crew, the group, token holders, and contributors time to get aligned, Dhanda stated.
“In 2026, we’ll return to governance with a recent strategy that unifies, fairly than divides,” he added. “The main target can be on making a extra acceptable approach of leveraging capital to develop the Jupiverse to attract in expertise, guarantee accountability, and transfer the house ahead.”
There may also be a pause in JUP spending on new working teams, Dhanda stated, noting that current ones will proceed as deliberate.
The Group Reserve will stay untouched till DAO voting resumes, with the Jupiter crew funding any group development tasks from its personal operational treasury.
Energetic staking rewards of fifty million JUP per quarter will proceed and be prolonged by way of the fourth quarter, though no new JUP emissions will happen, Dhanda stated
“We imagine that the good points from this variation – renewed product focus, pace of execution on group development, and a recent strategy to the DAO – can be huge,” he stated.
In January, Jupiter distributed a $550 million Jupuary airdrop.
Controversial Vote
BuddyChaddi identified that one crew member solid greater than 4.5% of all votes on a current proposal, greater than anybody else.
In response, Jupiter co-founder “Meow” stated within the governance discussion board on June 6 that they and co-founder Siong Ong don’t and won’t use their tokens for voting, even after they vest. A 3rd co-founder will proceed staking and voting, however stopped vesting from Might.
