On February 22 at 19:00 in the East Eight Zone, the Jupiter community passed a critical governance proposal: the future net release of JUP tokens will be reduced to zero, achieving approval with approximately 75% support. This voting result directly tears apart the tension between short-term airdrop profits and long-term inflation stability—the follow-up airdrop originally planned around "Jupuary," as well as the team's established release rhythm, were all paused at this moment. Discussions surrounding whether the "originally planned 700 million JUP airdrop should be postponed" and "how the team's chips should be adjusted" quickly spread from the governance forum to the secondary market, with investors beginning to question: when the net release is zeroed out, will the supply-demand structure, liquidity depth, and speculative participation of JUP in the secondary market maintain their previous trajectory?
Voting Results Announced: JUP Long-term...
● The significance of the proposal itself lies in the fact that Jupiter had previously planned a trajectory of continuous release and distribution—whether in terms of community airdrops or the linear unlocking for the team and early participants, the market implicitly accepted that JUP would be on a path of moderate inflation. Reducing the future JUP net release to zero means that after considering existing circulation and recycling arrangements, overall circulation will no longer see net expansion, shifting from a "net issuance asset" narrative to something closer to "supply cap," contrasting sharply with earlier expectations of continuous release.
● According to public data from Planet Daily and Golden Finance, about 75% of participants supported the zeroed net release in this vote, but approximately 25% of voters insisted on continuing the Jupuary airdrop. Behind these figures lie two conflicting interest demands: one side cares more about the value anchoring brought by reduced long-term inflation expectations and is willing to sacrifice current "exploitation"; the other focuses on the airdrop profits already priced into the market, hoping to complete distributions as originally planned, otherwise the opportunity costs and psychological expectations from existing participation will be difficult to align.
● From a mechanical perspective, tightening short-term supply often supports price expectations and holding confidence, especially in a cooler emotional environment, where the signal of "no longer net issuance" may be interpreted as a medium to long-term benefit by some funds. However, simultaneously compressed is the imaginative space surrounding airdrop dividends and the trading activity driven by the airdrop—when the foreseeable "free tokens" are weakened, motivations for exploiting airdrops, short-term speculation, and high-frequency trading participation will be marginally reduced, resulting in a more restrained secondary market structure focused on existing play.
Airdrop Paused: 700 Million...
● A widely circulated message about this proposal is that the originally planned 700 million JUP airdrop will be indefinitely delayed. This claim currently comes from a single source and requires further verification from more official channels, making it difficult to provide a precise description of its execution path and timeline. However, even as an expectation management signal, it is enough to change the psychological coordinates of many participants—from "the airdrop is coming, it's just a matter of time" to "whether and when this part of the tokens will enter circulation is back in the realm of uncertainty."
● For potential new users and speculators, the delay of the airdrop significantly undermines their logic of "locking in future profits by participating now," especially for those short-term funds that come from interaction, market-making, and score accumulation, who may cool down or even withdraw as a result. For long-time holders and mid-to-long-term buyers, the postponed 700 million means a temporary alleviation of dilution pressure: the potential selling pressure that originally needed to be considered in pricing has been temporarily pushed out by the market's timing window, providing existing tokens with a more relaxed performance space.
● A deeper change lies in the shift of the narrative regarding token distribution itself. Jupiter initially created a large-scale, festival-like airdrop narrative around "Jupuary," emphasizing coverage and immediate feedback; however, with the signals of zero net release and delayed airdrop appearing, the main line gradually shifts to "deflationary or quasi-deflationary expectations" and "more refined incentive design." If this part of the tokens is to be reused in the future, it might emphasize performance, contribution, or long-term protocol value rather than the enthusiasm of a single time window, which also forces the community to shift from a one-time benefit distribution mindset to the reconstruction of ongoing incentive mechanisms.
Team Token Debt Transformation: From Source of Selling Pressure...
● Alongside the zero net release, there is also an important rumor circulating in the market that is still in verification status: the tokens that the team and relevant parties will receive in the future will no longer be released in the traditional sense of "unlockable spot" but instead will be accounted for in a manner similar to debt instruments, accompanied by an implicit commitment of "no short-term selling pressure." If this design is ultimately confirmed, it will structurally weaken the panic imagination of "team lockup sell-offs" and add a level of pressure relief to the governance proposal.
● Debt transformation and deferred realization are in essence creating an opportunity for the team to "first promise, then fulfill" within governance and accounting rules: on the one hand, the team acknowledges on paper the economic rights they can enjoy in the future, locking in upward space linked to project growth; on the other hand, through extending the realization period and limiting direct secondary market sell-offs, it sends a friendly signal to stockholders—you do not need to be highly anxious at each unlocking point, since this part of the tokens will not immediately flow into circulation, but will resemble a conditional long-term claim.
● For the game relationship between the team and the community, this change shifts the question from "should we give the team money" to "in what rhythm and with what tools should we give it." The team needs to design a realization path that does not create market panic while ensuring their incentives are not hollowed out; the community hopes to ensure through governance provisions that the team’s earnings are truly linked to the protocol's long-term performance and not an advance cash out in disguise. Under the premise of zero net release, any handling of team tokens is more easily scrutinized, and debt transformation is just a beginning—the more challenging aspect will be the transparency and discipline in actual execution in the future.
Market Comparative Reflection: Huge Losses and...
● It is worth placing Jupiter’s actions in a larger context: according to Santiment data, XRP recorded approximately $1.93 billion in realized losses during the same period, reflecting the helplessness of many participants in accepting losses at lower levels. Simultaneously, from a single-source report, Bitdeer has completely liquidated all its Bitcoin holdings, and these signals collectively sketch a significantly cooling risk appetite macro environment—on this curve, proactive deleveraging, balance sheet contraction, and stop-loss are becoming the mainstream.
● At the same time, according to monitoring by HyperInsight, Huang Licheng's ETH long positions' floating losses have narrowed to about $79,000, showcasing the hesitation and probing of large holders and celebrity funds in a high volatility environment: while struggling with losses and adjusting positions, they are unwilling to exit the table entirely. This attitude precisely reflects the market's current "half-believing, half-doubting" state—neither willing to bear greater downside risk nor fearing to completely miss out on subsequent rebounds.
● In such an environment filled with losses and deleveraging, JUP's choice to zero out its net release is essentially a supply-side "self-restraint". Unlike XRP's massive realized losses or Bitdeer's direct liquidation for passive defense, Jupiter attempts to rebuild confidence in the token's value by weakening future selling pressure expectations. Additionally, due to the prevailing conservative sentiment, the community was more inclined to support this "first reduce the water flow" plan in the vote—during a phase where everyone fears additional uncertainties, any design that mitigates potential selling pressure is often more easily embraced by the majority.
From Wu Jihan's Liquidation to JUP Voting...
● In the report about Bitdeer’s liquidation of Bitcoin holdings, a comment from Wu Jihan is quite representative: "now having 0 holdings does not mean it will always be this way." This statement explains the phase of the liquidation decision while also providing a perspective for observing Jupiter’s voting: the community members currently choosing to support zero net releases and delayed airdrops do not mean they permanently abandon future profits, but rather utilize governance tools to solidify the optimal risk-return ratio under the current environment into a new consensus rule.
● In modern crypto projects, institutions and large holders can participate in the project direction through various means even without holding the spot: from on-chain governance votes, forum and social media opinions, to designing futures and options positions around project targets, holdings and discourse have long ceased to be completely equivalent. For JUP, those participants who temporarily reduce or even liquidate their positions may still cast a significant vote at critical governance nodes or influence the decisions of other token holders through market narratives.
● In an environment of tightening supply, potential new funds are adopting a posture of "waiting for clearer signals before entering": they see the net release reduced to zero and the team's tokens potentially becoming debt-like, but will still observe the details of these commitments over the coming months—whether liquidity is being excessively withdrawn, whether trading depth is maintained, and whether protocol revenues can support stronger value capture tools. Only when prices and liquidity stabilize under the new rules might these funds begin to reposition through spot and derivatives, and the current governance outcome will be seen as the opening of their assessment of whether Jupiter is worth betting on again.
After the Supply Gate is Closed: JUP...
The direct result of this proposal is that JUP has significantly alleviated potential selling pressure in the short term, while also undergoing a structural reshaping of long-term inflation expectations: transforming from a narrative of "continuous net issuance" to "net release zero," enhancing the imaginative space of holding JUP as a value carrier. Yet the cost is equally clear: some immediate benefits originally aimed at Jupuary and subsequent airdrop activities have been sacrificed, the trading heat and user growth momentum created around airdrops have been interrupted, and the internal community differences regarding "whether to continue giving benefits" will not simply disappear due to one vote.
In the context of overall market risk appetite weakening, merely relying on the narrative of "zero net release" is far from sufficient to support JUP's long-term value reassessment. To truly fulfill the "benefit" promised by this vote, Jupiter must provide stronger fundamental support: enhancing real trading demand through product iteration, optimizing the fee structure to boost value capture capabilities, and exploring buyback, destruction, or other capital management schemes within compliance. Only when governance narratives form a closed loop with cash flows, revenues, and return mechanisms will the tightening supply chosen by the majority transform from a proposal into a true foundation for supporting JUP's valuation.
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