Following the Helium (HNT) project, discussions are underway to halt automated token buybacks in the Jupiter (JUP) ecosystem as well.
Jupiter founder Siong Ong questioned the effectiveness of the JUP buyback program in a social media post, seeking community opinion.
Siong Ong stated that over $70 million was spent on JUP buybacks last year, but no significant impact on the price was observed. Ong suggested that using these resources more effectively as growth incentives for existing and new users might be more productive, and asked the community for their opinions on halting the buybacks.
A noteworthy comment also came from the Solana camp regarding this discussion. Anatoly Yakovenko, co-founder of Solana, the network Jupiter is working on, suggested a different capital management approach to the Jupiter Exchange team instead of buybacks. Yakovenko argued that a model where profits are held in the balance sheet as future-demand protocol assets, and users can earn returns by locking and staking tokens in exchange for these assets, would be more sustainable. According to Yakovenko, as the balance sheet grows, the total vesting of staking users on the protocol could also increase.
*This is not investment advice.
