- Jupiter DEX on Solana is allocating $137 million to kickstart its native Jupiter DAO, with $10 million in USDC and 100 million JUP tokens
- Funds will be used for development, with the budget replenished yearly. DAO wallet already funded.
- Jupiter is a popular DEX on Solana, accounting for 8% of TVL. Solana itself has seen huge growth this year, partially driven by memecoin mania.
Solana‘s decentralized exchange (DEX) Jupiter is allocating $10 million USDC and 100 million of its native JCP token ($127 million) – a combined $137 million at the time of publication – to kickstart its Jupiter DAO.
Allocation of Funds
As announced on March 27, the budget provides the DAO the capability to fund ideas with USDC and have the JUP allocation for long term incentive alignment with JUP contributors, developers wrote, continuing: “To ensure that the DAO will be able to execute on these crucial things over the long term, we will aim to top up the same budget on a yearly basis. For additional contributions, developers raised the following example:
If the DAO ends the year with 15M USDC and 50M JUP, the team will replenish 85M USDC from revenues and an additional 50M JUP will be transferred from the community cold wallets.”
DAO Wallet Funded
At its inception, the ecosystem funds are stored in a decentralized autonomous organization (DAO) multisig wallet with three initial members, with plans to expand access to more custodians within the coming weeks. Parallel to the announcement, the Jupiter DAO wallet address was funded with two separate transactions of USDC and JCP.
Jupiter’s Growth
Jupiter is currently one of the most popular decentralized applications on the Solana blockchain with $3.8149 million in total value locked (TVL), having grown 86% month over month. The DEX accounts for approximately 8% of the Solana ecosystem’s total TVL at the time of publication. The token currently has a fully diluted market cap of $1.25 billion.
Solana’s Recent Growth
With a gain of 807% in the past year, Solana has become one of the largest cryptocurrencies by market cap. A huge part of that growth was driven by the recent memecoin craze. On March 25, Jeo Boden ($BODEN), a Solana memecoin parody of United States President Joe Biden, surpassed $250 million in market cap with a gain of 54% within the past 24 hours.
Conclusion
The allocation of significant funds to the Jupiter DAO demonstrates the continued growth and development of the Solana ecosystem. As decentralized finance expands, the creation of DAOs to govern platforms and distribute funds will likely increase as well. It will be interesting to watch how the Jupiter DAO puts these initial funds to use.
