Jupiter Exchange Shakes Up Strategy: Rethinking JUP Buyback, Slashing Airdrop Size

Jupiter Exchange just flipped the script on its tokenomics playbook—and the market's watching every move.

The Aggregation Giant Pivots

Solana's leading DEX aggregator isn't just tweaking its roadmap; it's taking a hard look at its capital allocation strategy. The initial plan to buy back JUP tokens from the open market is getting a serious rethink. Simultaneously, the scale of its planned airdrop has been significantly trimmed back. This isn't minor fine-tuning—it's a strategic overhaul that signals a shift from aggressive user acquisition to sustainable treasury management.

Reading Between the Token Lines

Scaling back an airdrop often reads as a team conserving its war chest, especially when paired with a buyback reconsideration. It hints at a focus on long-term protocol-owned liquidity over short-term token distribution hype. For a platform that's become synonymous with Solana DeFi volume, these moves suggest confidence that organic growth, not giveaway incentives, will drive the next phase. It's a bet that utility, not free tokens, creates lasting value—a refreshingly cynical take in a sector that sometimes mistakes generosity for governance.

The new calculus appears simple: build a stronger foundation, even if it means fewer freebies today. In the grand casino of crypto economics, Jupiter seems to be moving its chips from the promotional table to the vault.

TLDR

• Jupiter Exchange is reviewing its JUP token buyback program after spending over $70 million with minimal price impact.
• The price of JUP remains down by nearly 89 percent from its all-time high despite aggressive buybacks.
• The platform has reduced its planned airdrop from 700 million tokens to 200 million to ease selling pressure.
• Siong from Jupiter suggested using funds for user rewards, platform features, and better incentives instead of buybacks.
• Amir Haleem of Helium supported the move and shared that Helium now uses revenue to grow users and build partnerships.

Jupiter Exchange is reassessing its token strategy after spending over $70 million on buybacks with minimal impact on JUP’s price, while also reducing the upcoming JUP airdrop from 700 million to 200 million tokens, as the token continues to trade nearly 89% below its peak.

Jupiter Considers Ending JUP Token Buybacks

Jupiter Exchange may end its JUP buyback program after failing to boost the token’s value through previous purchases. The platform spent more than $70 million last year, but the price remained NEAR multi-month lows throughout.

JUP currently trades at around $0.205, far from its all-time high of $1.83, recorded in late 2021.
Siong, a Core team member, shared that the team is now questioning whether buybacks still serve the project’s goals.

what do you all think if we stop the JUP buyback?

we spent more than 70m on buyback last year and the price obviously didn’t MOVE much.

we can use the 70m to give out for growth incentives for existing and new users.

should we do it?

—SIONG (@sssionggg) January 3, 2026

“The community must decide if continued buybacks help us or if that money builds more value elsewhere,” Siong stated.

He noted that most revenue had gone into JUP repurchases, locked for three years to reduce supply and support value.

Despite that strategy, the token underperformed many Solana-based assets, raising doubts about buyback effectiveness in current market conditions. Jupiter had previously committed to using 50% of protocol fees for JUP repurchases, but that policy is now under review.

Siong opened community discussions on whether the funds could instead support product development and user rewards. This shift aligns with changing market perspectives shared by other projects with similar challenges.

Community and Founders Weigh In on Alternative Token Use

The debate around JUP buybacks expanded after Amir Haleem, Helium’s founder, offered a contrasting view. Haleem said Helium and Helium Mobile made $3.4 million in revenue in October but chose not to buy tokens.

Instead, he said his team now focuses funds on growing users, expanding networks, and building useful partnerships. “Markets don’t reward buybacks the way they used to,” Haleem explained in response to Jupiter’s public post.

This perspective supported Jupiter’s internal suggestion to direct funds toward platform incentives and better features. Siong agreed that incentives for active users could bring more lasting value than token repurchases.

The team appears to be considering multiple proposals, with community input guiding the final decision. Discussions remain active on Jupiter’s governance and social platforms as the January deadline approaches.

The shift in approach comes as part of Jupiter’s broader effort to optimize long-term token distribution. That includes reevaluating the structure and size of the upcoming airdrop to balance growth with sustainability.

JUP Airdrop Cut from $700M to $200M Ahead of January Snapshot

Jupiter announced it will reduce its JUP airdrop from 700 million to 200 million tokens to ease selling pressure. The change aims to support token stability and reward actual platform contributors more precisely.

Out of the revised allocation, 175 million JUP will go to users who have actively used the platform. The remaining 25 million JUP will be distributed to users who stake their tokens during the snapshot period.

In addition to this, Jupiter reserved 200 million JUP exclusively for stakers in a separate long-term pool. Another 300 million JUP will remain locked to support the development and expansion of the JupNet ecosystem.

A separate 300 million tokens will fund ecosystem rewards without contributing to near-term token circulation. These locked tokens are designed to strengthen Jupiter’s future without adding immediate selling pressure.

The final snapshot for the airdrop will occur on January 30, 2026, with the entry price marked at $0.20. This price serves as a reference for future distribution plans and user eligibility at the time of the snapshot.