Jupiter Exchange (JUP), the popular decentralised exchange on the Solana Ecosystem, has just allocated new funds towards its DAO.
The DAO or Decentralised Autonomous Organisation is a specific DAO that will be used to grow the Jupiter Ecosystem where holders of JUP, the native toke of Jupiter, will decide the fate of the funds allocated.
Jupiter Allocated Funds to its DAO
On March 27th, 2024, Jupiter Exchange announced a new fund allocation towards its DAO, the Jupiter DAO.
The allocated funds stands around $110 Million, where there will be 10 Million USDC and 100 Million JUP.
Those funds will be kept safe in a multisig wallet that is kept by three members of the Jupiter Exchange team and a member from the Core Working Group or CWG of Jupiter.
There are currently no specific plans yet on how the funds will be used, but it is said that the main focus will be to use this to grow the Jupiter Ecosystem.
This means that there will be more products on the Jupiter DApp or Decentralised Application as well as new integrations with other DApps that are still in the development or established stage.
For example, there might be a new bridge or a data analytics platform on the Jupiter Ecosystem that will be created with the funds.
Another example is the probability of a new DApp integrating with JUP, for example, a new staking DApp that integrates the swap feature on Jupiter, just like MarginFi, one of the DeFi or Decentralised Platform on the Solana Ecosystem.
All of the decisions will be made through the DAO with the voting mechanism that is natively done on the Jupiter DApp.
The voting will be done through the proposals submitted in the DAO, which means that there is a probability for more proposals on the DAO in the future.
Current Conditions
Currently there are only two proposals that have been voted out in the Jupiter DAO Dapp, where most of the holders of JUP have casted their vote.
Voters in the Jupiter DAO need to lock their JUP in the DAO DApp, which means that more funds and more proposals means less selling pressure for JUP.
There are currently no new proposals on the DAO, but this might change soon if the Jupiter Team decides to make the funds official.
Holders of JUP who staked their JUP in the DAO will receive voting power with the same amount as the JUP they owned.
If you have some JUP, you can try to see how much voting power you have just by simply connecting your wallet to the DAO Dapp.
The DAO seems to be new as it has only been active in March where the two proposals have the voting period ranging in March 2024.
When the funds are successfully launched, there will probably be new proposals asking for funding from developers or asking to allocate some to improve the current Jupiter Exchange DApp and increase its liquidity, which will probably be submitted by holders of JUP.
Overall, these are all still speculations as there are no clear plans yet on how the funds will be allocated in detail.
So, if you own some JUP, the best thing for you to do is just to wait and see how you can utilise your JUP and support the growth of these funds when the time comes.
