Jupiter to buy back jup tokens at 50% starting next week

Jupiter Exchange, Solana's leading decentralized trading aggregator, announced plans to allocate 50% of the protocol fees to Jup Tokens repurchase and locks for three years starting on February 17th.

The initiative aimed at reducing circulating supply and increasing long-term stability will include the broader strategy of Jupiter to increase platform sustainability and promote deeper engagement within the Solana ecosystem. Some of them.

Move from token burn to locked buyback

The exchange will deploy a dedicated dashboard next week to provide transparency in the buyback operation.

The dashboard provides real-time tracking of repurchased Jup Tokens and subsequent locking processes, allowing community members to monitor the impact of the initiative.

Jupiter's latest buyback efforts followed a similar initiative in January, when the exchange burned Jup Tokens using 50% of the protocol fee, contributing to a 60% increase in the market value of the token.

However, the transition from combustion to lock suggests a long-term commitment to supply management rather than a short-term price action. By locking back-purchase tokens for three years, Jupiter aims to align incentives with sustained platform growth while maintaining liquidity for aggressive trading.

Expanding the existence of Jupiter

The buyback initiative follows a recent key discussion at the Catbedsault Conference, with Jupiter executives detailing future platform enhancements, suggesting potential acquisitions to strengthen their role within the Solana ecosystem. did.

This exchange has established itself as a major player in Solana's defi space, facilitating efficient token swap and liquidity aggregation for traders and developers.

Jupiter's decision to implement a structured buyback programme reflects a broader trend in the crypto industry. There, exchanges and protocols use supply control mechanisms to stabilize token values ​​and encourage user participation.

The major platforms employ similar strategies, including Binance Smart Chain's BNB Burns and Makerdao's acquisition and burn approach to MKR governance tokens.

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