In a major development within the decentralized finance (DeFi) sphere, the Solana-based super-app Jupiter is debating the continuation of its JUP token buyback program. The move could mark a significant shift in strategy aimed at fostering sustainable growth rather than short-term price gains.
What Led to the Decision?
On January 2, 2026, Siong Ong, the Co-Founder and Chief Technology Officer (CTO) of Jupiter, publicly disclosed the reasoning behind the potential decision. In a social media post, he stated that the buyback program had failed to deliver meaningful results, with over $70 million spent in 2025 without any substantial price shifts.
Ong explained, “We spent more than $70M on buybacks last year, and the price obviously didn’t move much. We can use the $70M to give out growth incentives for existing and new users.” This sentiment highlights the need to redirect resources toward user acquisition and retention strategies, rather than propping up token prices artificially.
A Divided Community
The proposal to end JUP token buybacks has stirred a lively debate within the Jupiter community. Some members have suggested using the funds for staking incentives instead, which could increase staking yields and attract new users. For instance, one user noted, “With 753 million JUP staked, that’s almost $0.09 per JUP in dividends, offering a 43% yield.”
However, others, including Ong, raised concerns about sustainability, questioning how the project would grow if revenues were heavily allocated to staking rewards.
In contrast, analyst Fabiano suggested a hybrid approach, recommending redirecting $10 million to staking rewards as a temporary measure. According to his calculations, this could provide an attractive annual percentage yield (APY) of approximately 25% — enough to stimulate short-term growth and tokenize enthusiasm.
Past Buybacks and Their Impact
Jupiter’s buyback program initially launched in February 2025 and significantly boosted the token’s value, with JUP surging by 300% in its first month. However, by the end of the year, the token had plunged to fresh lows, with an 88% price drop from a high of $1.8 to $0.2. This stark performance contrasts with successful token buybacks from projects like Aave [AAVE] and Hyperliquid [HYPE], which benefitted from positive market sentiment during their initiatives.
The Future of JUP and Jupiter’s Ecosystem
Jupiter has rapidly evolved from being a decentralized exchange (DEX) aggregator to positioning itself as a super-app encompassing lending, prediction markets, and perpetual trading. This diversification has led to cumulative revenues surpassing $369 million, according to DeFiLlama.
For now, the team appears to be weighing feedback from multiple stakeholders before making a final decision. Whether the funds will be allocated toward new user incentives, staking rewards, or other growth strategies remains uncertain.
As Jupiter navigates these critical discussions, the outcome will not only determine the fate of JUP’s buyback plans but could also set a precedent for other projects grappling with similar challenges in the DeFi space.
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