In early January 2026, Jupiter co-founder Siong Ong proposed halting the protocol’s $70M+ JUP buyback program from 2025, citing minimal price impact amid an 89% decline from peak levels, per Yellow News. JUP traded at $0.20–$0.22, down from highs, as circulating supply grew 150% since launch, per. Monthly unlocks of 53M JUP through June 2026 overwhelmed buybacks, offsetting only 6% of new tokens, per. Ong suggested redirecting funds to user incentives for growth, sparking community debate.
Solana co-founder Anatoly Yakovenko explained that buybacks fail in high-emission models because unlocks are priced at current spot value, not future expectations. He recommended stashing profits for larger future repurchases or one-year staking with yields, aligning token value with post-buyback scenarios. This encourages long-term holding, similar to traditional finance, per. Helium’s suspension of HNT buybacks for subscriber growth highlights similar shifts.
Jupiter’s community is divided: some see buybacks as alignment tools, others favour incentives to boost adoption, per. As Solana’s top DEX aggregator with $8.6B DeFi TVL, Jupiter reduced its 2026 airdrop from 700M to 200M JUP to ease pressure, per. JUP’s utility as a governance token limits buyback efficacy when emissions dominate, per. Solana (SOL) at $184.50 remains stable, per CoinMarketCap, but JUP’s case questions DeFi tokenomics.
JUP could stabilise at $0.30 by mid-2026 if incentives drive usage, but $0.15 support risks further drops, per Techopedia. Monitor Jupiter’s fee revenue on DefiLlama and SOL’s TVL. Dollar-cost average into SOL with stop-losses below $170, or diversify into USDC or ETH ($4,070), per TradingView. Follow @TheBlock__ on X for updates. Yakovenko’s insights underscore long-term strategies over reactive buybacks in DeFi.
