What is Jupiter (JUP)? What You Need To Know About Its Airdrop on Solana

The Jupiter (JUP) token launch on Solana is an upcoming event within the cryptocurrency and decentralized finance (DeFi) sector.

Jupiter, a decentralized exchange (DEX) aggregator, is set to distribute the JUP token on January 31, with claims opening at 10am ET. This distribution is part of a broader strategy to integrate the token within the Solana ecosystem.

Eligibility and Distribution Strategy

The JUP airdrop is available to Solana wallet holders who interacted with the Jupiter protocol before a snapshot taken on November 2. Ultimately, 4 billion JUP will be distributed across four airdrop waves, with 1 billion set for the initial airdrop on January 31.

The distribution strategy for the JUP token includes:

20% of the initial airdrop tokens evenly distributed across all eligible wallets.
70% allocated based on a scoring system that reflects the user’s engagement with the protocol.
10% reserved for community members and developers.

Future airdrops are planned for new users, although specifics regarding timing and distribution have not been disclosed.

Tokenomics

The tokenomics of the JUP token encompass:

Total Supply: 10 billion JUP tokens.
Community Allocation: 50% of the total supply is set aside for community distribution through airdrops and other initiatives.
Team and Operational Needs: The remaining 50% is allocated for team and operational needs, with team allocation subject to a vesting period starting in January 2025.

The circulating supply at launch will be 1.35 billion JUP, which includes 1 billion tokens allocated for the airdrop claim, 250 million for a launch pool, and 50 million each for loans to centralized exchange market makers, and immediate liquidity pool needs.

Technology and Platform Use

Jupiter utilizes the Solana blockchain for its operations, leveraging the blockchain’s capabilities for high-speed and low-cost transactions.

The platform’s key features include:

Optimized Trade Execution: Jupiter aggregates liquidity from multiple decentralized exchanges on Solana to provide users with optimal trading prices and reduced slippage.
Enhanced Trading Experience: The use of Solana’s blockchain technology aims to facilitate efficient and cost-effective trading on the platform.

Conclusion

The launch of Jupiter’s JUP token on the Solana blockchain represents a strategic effort to distribute the token to a wide user base and integrate it within the DeFi ecosystem on Solana.

The distribution approach and subsequent tokenomics are designed to support the platform’s operations and incentivize user engagement and participation in the protocol.

Editor’s note

This article was written with the assistance of AI. Edited and fact-checked by Stephen Graves

Stay on top of crypto news, get daily updates in your inbox.

Source: https://decrypt.co/resources/what-is-jupiter-jup-what-you-need-to-know-about-its-airdrop-on-solana