Solana’s leading decentralized exchange aggregator, Jupiter, has made the decision to pause all community voting until next year and lock its governance Treasury until 2027. This move is aimed at addressing community burnout and focusing on developing new products for the platform.
The suspension of voting activities means that one of the primary functions of Jupiter’s native token, JUP, which is used for governance decisions within the Jupiter DAO, will be temporarily disabled. According to a statement from team member Kash Dhanda, voting will be on hold until at least the end of 2025.
In the statement, Dhanda acknowledged that the current DAO structure was not functioning as intended, leading to breakdowns in trust and an increase in negative sentiment with each vote. The team at Jupiter plans to redirect their efforts away from frequent governance votes and towards enhancing their product offerings and market presence.
Despite the governance pause, Jupiter’s DEX continues to be a significant player in the Solana ecosystem, with over $2.2 billion locked on the platform and daily fees averaging $1.6 million. The platform facilitates more than 80,000 token swaps daily, serving a user base of over 18,000 active traders.
However, Jupiter’s aggregator has faced challenges in recent months, with a decline in user traffic by up to 60% and increased competition from platforms like PumpSwap in the meme coin niche, which now accounts for a majority of trading volume on Solana.
As part of the new plan, the DAO’s Treasury, known as the Litterbox Trust, will remain inaccessible for spending or budget proposals for the next two years. Revenue generated from staking services like jupSOL will continue to flow into the Treasury, but new JUP minting for governance rewards has been put on hold.
Regular staking options will still be available for token holders, with approximately 50 million JUP set aside for ongoing staking incentives. The team has also announced that there are no plans for additional JUP emissions, apart from a forthcoming 700 million token distribution as part of the final phase of the Jupuary airdrop.
The team anticipates that the suspension of governance rewards will help alleviate selling pressure on the token, which has seen its price hover around yearly lows of $0.40. A revamped governance structure is scheduled to be introduced in 2026 to address past issues and streamline decision-making processes before the Treasury fully reopens in 2027.