Jupiter Price | Utility & Value Explained JUP

Represents the future cashflow derived from protocol fee redistribution through a buyback mechanism that indirectly benefits JUP holders by reducing circulating supply. This cashflow originates from 50% of protocol fees being used to repurchase JUP tokens from the market, which enhances token scarcity and potential value over time. These repurchased tokens are then locked for a 3-year period; temporarily removing them from circulation.

[2₁] = ƒ(trading_volume, fee_rate, buyback_ratio)

trading_volume — represents the aggregate DEX volume on Jupiter
fee_rate — indicates the protocol take rate of ~0.1%
buyback_ratio — illustrates the proportion of the protocol take rate which is allocated for JUP Buybacks

Represents the 30-day cooldown period in unstaking JUP tokens that prevents users from trading or transferring their tokens for a specified duration, exposing them to a range of risks tied to this commitment. These risks include opportunity costs, as tokens in the cooldown period cannot be redeployed to other potentially lucrative opportunities, market volatility, where sudden price drops in JUP could erode the value of staked assets, and smart contract risks.

[7] = ƒ(unstaking_period, amount_staked, price_at_unstaking)

unstaking_period — represents the duration for which the tokens are subject to the cooldown period
amount_staked — reflects the quantity of tokens committed to staking
price_at_unstaking — indicates the token's market price at the time of unstaking

Represents the required voting activity to unlock governance power and participation cashflows; imposing costs on users, including time, resources, and effort. These costs involve time spent understanding proposals, gas fees for submitting votes, and the effort needed to participate in discussions or make informed decisions.

[8] = binary

binary — indicates whether a holder participates in voting (1) or does not (0), as the act itself triggers the event

Represents the benefits derived from the power to influence proposals submitted by the Jupiter Team, covering critical areas such as budgets, branding, governance processes, grants, and tokenomics and selecting candidate projects for the Jupiter launchpad. Its value lies in enabling token holders to shape outcomes such as affecting revenue generation through LFG project allocations, DAO onboarding and retention via microgrants, and JUPs' incentive appeal through strategic tokenomics changes.

[3] = ƒ([8], user_vote_participation, user_vote_allocations, user_strategy_representations)

user_vote_participation — illustrates the level of voter engagement or quorum in the governance process
user_vote_allocations — reflects the distribution of votes across different governance options or proposals
user_strategy_representations — describes the voters' strategic preferences or desired governance outcomes

Reflects the rewards distributed to JUP stakers for their active participation in governance through the Active Staking Rewards (ASR) program. These rewards are funded by fees from the launchpad, including a percentage of each project's token supply, standard JUP fees from launchpad activities, and the annual 'Jupuary' airdrop campaign.

[2₂] = ƒ([7], proposal_participation, usage_fee(jup), project_token_allocation, jupuary_allocation)

proposal_participation — represents the level of consistent participation in governance proposals, determining eligibility and reward weighting for active stakers based on a per-proposal calculation
usage_fee(jup) — denotes the portion of standard fees collected from Launchpad reserved for active stakers
project_token_allocation — indicates the tokens allocated to active stakers from Launchpad projects
jupuary_allocation — signifies the tokens distributed during the annual Jupuary airdrop