Jupiter DEX begins JUP buyback with protocol revenue

Jupiter officially started its first repurchase of JUP tokens, with data on the chain confirming that 4.88 million JUP worth $ 3.33 million has already been bought.

The redemption of February 26 was reported on X by the popular analyst of the AI ​​姨 chain, who reported Jupiter (Jupp) Litter address used for all buyout transactions. The acquisition is the first step in the wider Jupiter strategy to buy the JUP tokens with 50% of the protocol costs.

The redemption initiative, which was unveiled on February 13, intends to reduce the number of tokens in circulation by locking the tokens brought up for three years and generating purchase pressure. The cryptocurrency community has praised this decision, considering it as a net positive which will strengthen demand and prevent Jup from becoming a “value trap”.

Jupiter is expected to spend around $ 50 million on JUP redemptions this year, depending on its revenues of $ 102 million in 2024. These buyouts would represent around 2.7% of the market capitalization of $ 1.8 billion in JUP.

Jupiter continued to hold his place as the best DEX aggregator in Solana. The protocol generates costs by directing transactions between many Dexs, such as Raydium and Orca, and ensuring that traders receive the best exchange rates. In the past year, Jupiter’s revenues have increased considerably due to the Even Trading Frenzy on Solana.

The trading platform Jupiter Perps, which holds more than 80% of the Solana’s perpetual trade market, was another key contributor to the growth of Jupiter’s income. In 2024, revenues increased from $ 3 million in January to $ 21 million in December, according to on-chain Analyst Ai Aunt.

Almost 40% of Jupiter’s total income for the year, or $ 35.86 million came from costs during significant negotiation periods, including the point In Trump same trading.

The Jupiter’s buyout initiative is in accordance with a greater deffi trend in which protocols such as Aave (GHOST) and Ethena (This one) implement value methods to the value of token. Although the long -term effects are still to be seen, the buyout initiative shows an increasing accent on the alignment of the value of token holders with the growth of the protocol.