Following the Helium Project (HNT), discussions are underway to also put an end to automated token redemptions in the Jupiter (JUP) ecosystem.
Jupiter founder Siong Ong questioned the effectiveness of JUP’s buyback program in a social media post, seeking community opinion.
Siong Ong said more than $70 million was spent on JUP buybacks last year, but no significant impact on price was seen. Ong suggested that more effective use of these resources as growth incentives for existing and new users could be more productive, and asked the community for their thoughts on stopping buybacks.
A noteworthy comment also came from the Solana camp regarding this discussion. Anatoly Yakovenko, co-founder of Solana, on which the Jupiter network works, suggests to the Jupiter Exchange team a different approach to capital management instead of buybacks. Yakovenko argued that a model in which profits are kept on 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 increases, the total amount of protocol user rights could also increase.
*This does not constitute investment advice.