Jupiter's 130 Million JUP Burn: DAO Vote Passes, Unstaking Period Shortened to 7 Days

Jupiter, the leading DEX aggregator on Solana, has executed a community-approved token burn of approximately 130 million JUP tokens (about 4% of circulating supply), following a DAO vote that concluded on November 6, 2025. The burn, sourced from the platform’s Litterbox Trust reserve fund, aims to reduce dilution risks and simplify tokenomics. In a related move, Jupiter has shortened the JUP unstaking period from 30 days to 7 days, enhancing liquidity for holders while addressing concerns over long lockups.

The Burn: Reducing Supply and Building Confidence

The “Litterbox Burn” proposal, voted on by the Jupiter DAO, permanently removed the 130 million JUP accumulated through 50% of protocol revenue redirected to the trust fund. Originally intended for DAO use after three years, the tokens were deemed to create uncertainty, prompting the 86% approval rate. This action, effective immediately, marks Jupiter’s first major supply reduction since launch, signaling a commitment to long-term holder alignment.

The Litterbox Trust, established earlier in 2025, holds 50% of on-chain fees for buybacks. With the burn complete, future revenue allocation will be revisited in a separate vote, potentially shifting to stablecoins or other uses to avoid JUP accumulation.

Unstaking Period Reduction: From 30 to 7 Days

Responding to holder feedback, Jupiter has implemented a 7-day unstaking window for JUP, down from 30 days. This change, part of the DAO’s “Fresh Start” initiative, improves flexibility for stakers earning Active Staking Rewards (ASR) and reduces opportunity costs. The adjustment aligns with governance efforts to refocus on JUP as the ecosystem’s core asset, following the DAO’s downsizing and elimination of working groups.

ASR rewards, distributed quarterly based on participation, continue unchanged, with the burn enhancing scarcity for future distributions.

Market and Community Impact

JUP rose 1.42% in the 24 hours post-burn, diverging from a 1.35% weekly decline and 5.85% monthly drop, trading at $0.34 with a $3.4 billion market cap. The move to 7-day unstaking has boosted sentiment, with 600K followers on X generating 2.1M impressions for the announcement. Community approval at 86% reflects alignment on reducing uncertainty, though some note the burn represents just 0.3% of the 10 billion total supply.

Jupiter’s ecosystem continues expanding, with Sunrise Gateway integrating Monad assets and Jupuary plan advancing cross-chain liquidity.

In summary, Jupiter’s DAO-approved burn of 130 million JUP (4% circulating supply) and shortened 7-day unstaking period simplify tokenomics, reduce dilution, and enhance holder flexibility, signaling a fresh start amid Solana’s DeFi growth.