Solana-based decentralized exchange (DEX) Jupiter has announced the launch of its native Decentralized Autonomous Organization (DAO), with a staggering initial capital of $137 million via USDC and JUP.
In the announcement on March 27, the developers revealed that the budget allocated to the DAO enables funding for ideas using USDC while also allocating JUP for long-term incentive alignment with JUP Contributors.
“To ensure that the DAO will be able to execute these crucial things over the long term, we will aim to top up the same budget on a yearly basis. If the DAO ends the year with 1.5M USDC and 50M JUP, the team will replenish 8.5M USDC from revenues, and an additional 50M JUP will be transferred from the community cold wallets,” the developers explained.
Users Control Access
The integration of a DAO in the Jupiter DEX promises to empower users with greater control over the platform’s governance and direction, which aligns with the core beliefs of decentralization.
DAOs are governed by consensus mechanisms and smart contracts, which allow stakeholders to collectively make decisions without depending on traditional centralized structures.
Upon its establishment, the ecosystem funds are stored in multisig wallets governed by a DAO, initially comprising three members. There are plans to expand access to additional custodians in the coming weeks.
Jupiter’s Total Locked Value (TVL)
Jupiter stands out as one of the leading decentralized applications on the Solana blockchain, boasting a total value locked (TVL) of $381.49 million. Impressively, the figure reflects an 86% month-over-month growth, according to DeFiLlama.
At the time of writing, the DEX contributes approximately 8% to the total TVL of Solana ecosystems.
Solana has firmly secured its position as one of the fastest growing blockchain in the industry, with the SOL currently ranking as the fifth largest crypto asset by market cap. A significant portion of that growth can be attributed to the recent memecoin frenzy on the network.
