Jupiter Exchange’s $70 million token buyback programme in 2025 failed to offset heavy selling pressure from upcoming JUP unlocks.
The JUP token has dropped around 89% from its peak as roughly $1.2 billion worth of tokens remain scheduled for release.
Founder Siong triggered debate after suggesting buybacks be paused in favour of growth-focused incentives.
We spent more than $70 million on buybacks last year, and the price obviously didn’t move much.
Siong said.
He proposed redirecting funds towards rewards for active users and subsidies to attract new participants.
Community response was divided, with some arguing buybacks are ineffective during large unlock cycles.
Critics warned that halting buybacks could worsen sentiment and accelerate selling pressure.
Jupiter’s buybacks covered only about 6% of unlocked supply, limiting their market impact.
Monthly unlocks of roughly 53 million JUP are scheduled through June 2026, expanding circulating supply.
Since launch, JUP’s circulating supply has increased by about 150% despite long-term token lock-ups.
Solana co-founder Anatoly Yakovenko proposed staking-based capital formation as an alternative strategy.
Let people lock up and stake for a year to get a token yield.
Anatoly Yakovenko said.
He argued staking aligns long-term value with balance sheet growth rather than short-term price defence.
Similar challenges were cited at Helium, which suspended buybacks in favour of user growth initiatives.
The debate highlights broader concerns over buybacks in high-emission crypto ecosystems.
At the time of reporting, Jupiter price was $0.2179.