Jupiter Exchange, the leading decentralized trading aggregator platform on Solana, has just announced a plan to allocate 50% of the protocol fees to buy back and lock up JUP tokens over the next three years, starting from February 17.
This program aims to reduce the circulating supply, drive long-term stability, and play a crucial role in Jupiter's sustainable development strategy. It also serves as a strategic move to strengthen Jupiter's position in the Solana ecosystem.
To ensure transparency, Jupiter will launch a dedicated dashboard next week, providing real-time data on the amount of JUP tokens being bought back and locked up, allowing the community to directly monitor the impact of this program.
Previously, in January 2025, Jupiter used 50% of the protocol fees to buy back and burn JUP, contributing to a 60% increase in the token price. However, the transition from burning to token lockup demonstrates Jupiter's long-term commitment to supply management, rather than just focusing on short-term price fluctuations.
With the three-year token lockup policy, Jupiter aims to align the platform's interests with sustainable growth, while maintaining the liquidity necessary for trading activities within the ecosystem.
This buyback program was announced following important discussions at the Catbedsault Conference, where Jupiter's leaders revealed upcoming platform upgrades and the potential for strategic acquisitions to strengthen Jupiter's position on Solana.
As a key player in the DeFi space on Solana, Jupiter has been providing efficient token swap and liquidity aggregation solutions for both traders and developers.
The implementation of a structured buyback strategy reflects a broader trend in the cryptocurrency industry, where more platforms are adopting supply control mechanisms to stabilize token values and drive user engagement.
Major projects like Binance Smart Chain with its BNB burning program or MakerDAO with the MKR token buyback-and-burn model have also deployed similar strategies to maintain long-term value.
