Will Jupiter end its $JUP buyback program?

jupiter exchange I am reconsidering whether to continue. $JUP token buyback program After spending more than $70 million in 2025, the impact on price performance was limited and short-lived. As of early January 2026, buybacks have not officially ended, but public statements from protocol leadership confirm that the future of buybacks is under consideration amid persistent concerns about tokenomics, dilution, and value capture.

This discussion places Jupiter at the center of a broader industry debate about whether buybacks can meaningfully support token value, especially in the high-emissions cryptocurrency ecosystem at Solana.

What is Jupiter and why share buybacks are important?

Jupiter Exchange is a decentralized exchange aggregator. Solana blockchain. The protocol routes trades across multiple liquidity venues, providing users with optimal pricing and execution. has become one of the most frequently used DeFi Applications within the Solana ecosystem.

By late 2025, Jupiter reported cumulative transaction volume of over $1 trillion and annual protocol revenue of approximately $365 million. These numbers were driven by sustained trading activity and the launch of new areas such as: Jupiter Lend, Total amount locked reached $1 billion within 8 days.

On the back of this strong operational performance, Jupiter has introduced a buyback program to more closely align protocol revenues with the economic value of the $JUP token.

$JUP Buyback Scheme Overview

Jupiter Announcement of share buyback plan The program allocated 50 percent of the fees generated by the protocol to buybacks of $JUP on the open market. Purchased tokens will be locked in a multisig wallet for three years and will be removed from circulation during that period.

The stated objective was to reduce circulating supply while introducing a predictable source of buy-side demand that is directly related to the use of the protocol. Based on revenue at the time, some community members estimated the daily buyback could exceed $500,000.

Although originally scheduled to begin within days of the announcement, the share buyback did not begin until mid-February 2025. Once launched, the program continued to run until the end of the year.

By December 2025, Jupiter had spent over $70 million to buy back $JUP, with an average acquisition price of approximately $0.495. On-chain transaction data showed consistent on-chain purchases rather than over-the-counter transfers, confirming that the program introduced real purchasing pressure.

Nevertheless, the market performance of the token declined during the same period. $JUP was trading around $0.19 by late December 2025, down 64% from its September high. By early January 2026, the price was hovering around $0.205, with the token approximately 89% below its all-time high, according to . coin market cap.

Independent analysts who reviewed the program’s results estimated that for every dollar spent on share buybacks, less than $1 of market value was retained. These conclusions are based not only on short-term volatility, but also on changes in circulating supply, emission schedules, and price fluctuations following buybacks.

Discussions for January 2026

The current discussion began on January 3, 2026, when Jupiter co-founder Xiong Ong publicly raised questions about X. Ong noted that more than $70 million was spent on share buybacks in 2025, but there was little ongoing impact on prices, and asked whether those funds could be used more effectively elsewhere.

The discussion took place immediately after Helium announces end of HNT purchase programcited the lack of measurable market response. Both cases reflect a widespread reassessment within the crypto market of the effectiveness of buybacks in token-based systems, particularly when supply expansion is underway and secondary market liquidity is high.

As expected, this post received a huge response. Reactions ranged from calls for a complete end to share buybacks to arguments that programs need a longer period of time to show results.

Mr Ong later clarified that no decision had been taken and that the discussions were not meant to suggest immediate policy changes, but rather to gather feedback. He also addressed misconceptions about Jupiter’s earnings, saying the majority of his personal net worth is still tied to $JUP.

Community position: divided but engaged

Community reaction remains divided. Proponents of ending buybacks argue that crypto buybacks are structurally constrained when emissions and unlocks exceed the amount of buybacks. Seen from this perspective, there is a risk that share buybacks will function as a recurring expense if there is no long-term supply effect.

Many in this group advocate alternatives such as direct revenue sharing in stablecoins, staking-based rewards tied to lock-up periods, or incentives that more directly reward long-term participation.

Opponents counter that share buybacks should be evaluated on a multiyear cycle and warn that halting them could further weaken holder confidence. Some argue that without a compensation mechanism, $JUP holders would end up bearing dilution without receiving a pro rata share of protocol revenues.

Possible alternatives are under consideration

Several alternatives have emerged in community and leadership discussions.

• Revenue sharing model that distributes a portion of protocol fees directly to token holders
• A staking mechanism that reduces liquid supply while providing returns derived from real protocol revenues
• Product-linked value capture, such as paid in-app features and advanced routing services
• Fee tier system that reduces transaction costs by holding or locking tokens

Although none of these approaches have been formally proposed through governance, leadership indicates that value generation mechanisms are under active consideration.

What’s next for Jupiter and $JUP?

Jupiter’s experience highlights a central challenge in DeFi. High revenue and product adoption do not automatically lead to effective token value capture. The share repurchase program provided a clear and measurable test case, the results of which are currently being reflected in the internal reassessment.

Whether Jupiter ends, changes, or replaces the program, this decision could impact how other high-yield protocols approach Tokenomics in 2026.

conclusion

Jupiter has not yet concluded its $JUP buyback program, but its future is clearly being evaluated. After deploying over $70 million with limited temporary price impact, the protocol is re-evaluating whether buybacks are the most effective mechanism for aligning token value with performance.

This discussion reflects broader structural challenges in crypto tokenomics, especially in ecosystems with persistent emissions. How Jupiter responds will shape not only its own token strategy, but also the broader industry’s thinking about sustainable value capture.

source:

• X post: Siong Ong asks about JUP buyback
• Website: Jupiter Exchange
• Defilama: Jupiter Exchange TVL