Jupiter DEX Initiates DAO with $137 Million Fund, Holds 8% of Solana's Total Value Locked
Summary:
Solana-based decentralized exchange, Jupiter, is initiating its DAO with a funding of $137 million, in a mix of USDC and its native JCP tokens. The funds aim to financially back projects while encouraging long-term contribution from its community. The firm plans to replenish the DAO's finance annually. Starting with three key members, more custodians will be added soon. With recent exponential growth, Jupiter currently accounts for about 8% of the total value locked in the Solana ecosystem.
Jupiter, a decentralized exchange (DEX) operating on the Solana network, is initiating its Jupiter DAO with a donation of 10 million USD Coin (USDC) and 100 million of its proprietary JCP tokens. The total value of the donated funds equals approximately $137 million as of the time of reporting. According to the organization's announcement on March 27, the endowed funds equip the DAO with resources to financially back proposals utilizing USDC, while leveraging the JCP tokens for sustained stimulus alignment with J.U.P contributors. To ensure long-term operational capacity, the organization aims to annually refill the DAO's treasury to maintain the initial amount. To exemplify, developers explained that should the DAO's treasury dwindle to 1.5 million USDC and 50 million JCP by the year's end, the team will top up the treasury with 8.5 million USDC from its revenue stream and an additional 50 million JCP will be transferred from community cold wallets.
At inception of the DAO, three key members will unequally hold the ecosystem funds in a multisignature wallet, with expansion to include more custodians planned for the upcoming weeks. Concurrently with the launch, the Jupiter DAO wallet was credited separately with installments of USDC and JCP.
Currently, Jupiter holds a notable status as one of the esteemed decentralized applications on the Solana platform, accounting for roughly 8% of the overall value locked at $381.49 million, which represents an 86% increase month-over-month. The proprietary JCP token's fully diluted market value stands at $12.5 billion. Notably, Solana's market capitalization has surged 807% in the past year, affirming its position as a leading cryptocurrency. The recent memecoin frenzy substantially contributed to this growth. An instance of this was when Jeo Boden (BODEN), a Solana-based memecoin parody of US President Joe Biden, surpassed the $250 million market cap milestone on March 25, recording a 54% surge within the preceding 24 hours.
Published At
3/27/2024 7:37:09 PM
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