Solana-based decentralized exchange (DEX) Jupiter has allocated 10 million USD Coin (USDC) and 100 million of its own JUP tokens (approximately $127 million), with a total value of $137 million at the time of publication, to kickstart its Jupiter DAO.
“This operational budget provides the DAO the capability to fund the ideas with USDC and have the JUP allocation for long term incentive alignment with J.U.P Catributors. […] To ensure that the DAO will be able to execute on these crucial things over the long term, we will aim to top up the same budget on a yearly basis,” Jupiter stated.
As an additional contribution, Jupiter provided the following example:
“If the DAO ends the year with 1.5M USDC and 50M JUP, the team will replenish 8.5M USDC from revenues and an additional 50M JUP will be transferred from the community cold wallets.”
At the time of establishment, the ecosystem funds are stored in a multi-signature wallet of the decentralized autonomous organization with three initial participants, with plans to expand access to more custodians in the coming weeks. Alongside the announcement, the wallet address of the Jupiter DAO was funded through two separate transactions of USDC and JUP tokens.
We have officially funded 10M USDC and 100M JUP into a DAO wallet.
This operational budget provides the DAO the capability to fund the ideas with USDC and have the JUP allocation for long term incentive alignment with J.U.P Catributors.
Besides LFG selection, the DAO will also…
— Jupiter 🪐 (@JupiterExchange) March 27, 2024
Jupiter (JUP) is currently one of the most popular decentralized applications on the Solana (SOL) blockchain, with a total locked value (TVL) of $381.49 million, representing an 86% increase compared to the previous month. At the time of publication, the DEX accounts for approximately 8% of the total TVL in the Solana ecosystem. The JUP token currently has a fully diluted market capitalization of $12.5 billion.
With a 807% growth over the past year, Solana (SOL) has become one of the largest cryptocurrencies by market capitalization. A significant portion of this growth was fueled by the recent craze around meme coins.
