Jupiter

The Indirect Dividends VCM reflects the value captured through systematic value accrual through JUP token buybacks. These respective buybacks are funded through 50% of the protocol take rate of ~0.1%. Once tokens are bought-back and locked for a 3-year term, value is effectively distributed to all token holders by reducing the circulating supply; increasing relative ownership share to active voters.

The Yield-Incentivized Governance VCM reflects the multi-faceted value generated by incentivizing token holders to be active participants in governance, fostering a committed community through regular participation and social interaction.

The Origins of Value (OoVs) that compose the mechanism demonstrate interdependence: staking JUP tokens is the entry point (Risk Exposure); conditioning the act of voting (Conditional Action) in governance (Governance), which in turn unlocks the Active Staking Rewards (ASR) (Future Cashflow). This structure ties value capture to user engagement within the JupiterDAO, facilitating the governance of the J.U.P.

To capture value, users must stake JUP tokens; later, subjecting them to a 30-day cooldown period on withdrawal initiation. Users can vote on governance proposals, such as budget decisions, tokenomics, or launchpad project approvals. Voting grants influence the ecosystem’s direction, and consistent participation qualifies users for rewards funded by launchpad fees (e.g., project token allocations) and the annual Jupuary airdrop.

The amount of rewards distributed to users will depend on their “voting power”, which is determined by the number of times they participate in voting, along with the amount of tokens they have staked. The process requires users to actively engage rather than passively hold tokens, ensuring only committed participants benefit.