How Caper approaches this Jupiter’s trajectory is the strongest possible argument for the problem Caper (/wiki/foundations/what-is-a-caper) is built around. Jupiter did more than most DAOs to make governance work –: it paid holders to vote through ASR –, and still concluded that its …me a liability worth pausing. Two structural facts drove that outcome: pParticipation had to be subsidizedbought with fresh emissions because it was extrinsic to the votenothing in the vote itself rewarded it, and a $JUP-weighted vote is still a vote bought on a market, so influence trackeds capital rather than commitment. Caper folds a different quantity into the weight. A caper In a caper (/wiki/foundations/what-is-a-caper) , a member’'s vote weight combines held tokens with the member’s earnedes from the tokens they hold together with the soulbound (/wiki/dao-governa…rship/soulbound-tokens) votes, and the same weight governs what a member can take from the treasury on exit, so the measure that governs also settles the way out. The vote token is DIVISIBILITY_MAXIMUM, minted one per ballot cast and by nothing else – buys, sells and transfers mint none – they earn by casting ballots, so participation is part of the weight and needs no separate subsidy. Buying, selling and non-transferable (its depositor role is bound to the component’s own global_caller and its updater is deny_all), so v is an accumulated record of participation that cannot be bought off another holderring tokens earn no votes, and nobody can buy, borrowed, or farmed for a reward – it is minted only to the account that casts the ballot – and a member’s first vote counts for nothing, so freshly-arrived capital carries no weight at all until it has started voting. Participation does not need a quarterly subsidy because it is the weight, and there is no separate ASR emission to fund. This is not a claim that holdings do not matter – t is a straight multiplier, so a bag still counts – but a l another member's. Holdings still count, but a big bag alone can't capture control. The same weight sets a member's fair sharge bag alone cannot capture control, because the second factor has to be earned one vote at a time. And because that earned standing also of the treasury, and a member who losets each member’s claim on the treasury at exittrust can exit any time (/wiki/dao-governance/concept…ip/rage-quit-and-exit-rights) , a member who loses trust can leave with their fair share with it rather than wait force the whole DAO to pause; voice and exit are the same number.

References - Jupiter DAO gov…ds. - Jupiter documentation —– Staking (https://docs.jup.ag/…ause of DAO voting until 2026.

How Caper approaches this Jup… A caper member’s vote weight is (t·v)/(V·T) –combines held tokens t timeswith the member’s earned soulboun…rship/soulbound-tokens) votes v, over supply V and circulation T – computed by the contract’s compute_vote_weight helper and reused verbatim by exit() to size a member’s, and the same weight governs what a member can take from the treasury shareon exit, so the same metricmeasure that governs also settles the… and exit are the same number.

Name Jupiter (JUP DAO) Type P…nchpad) Governance token JUP —– 10 billion total supply, laun…a stated “breakdown in trust” —– before restarting it in 2026 with Work Groups abolished

Jupiter is the dominant swap a…oting systems in the industry —– it pays quarterly rewards to … vote rather than merely hold —– and then, in June 2025, it pa…entation or primary reporting.

Solana’s aggregator and one of…P to nearly a million wallets —– one of the largest distributions in Solana’s history —– and the project has continued…s are a direct response to it.

Active Staking Rewards: paying…ot be skipped or accelerated” —– a deliberate guard so nobody …hing that governance pays for.

The Litterbox: turning protoco…ue rather than from emissions —– the mirror image of the infl…y-management) that funds ASR.

When a DAO pauses itself On 2…a reset rather than a retreat —– a “Fresh Start” to scale back…r than a source of legitimacy —– the failure modes (/wiki/dao…ecosystem’s most-watched DAOs.

The restart, and what did not …enomics and treasury directly —– revenue allocation, supply co…yout to its own token holders —– the outcome a purely rent-see…g) basis of the vote did not.

How Caper approaches this Jup… most to make governance work —– it paid holders to vote through ASR —– and still concluded that its …’s vote weight is (t·v)/(V·T) —– held tokens t times the membe…er supply V and circulation T —– computed by the contract’s co…llot cast and by nothing else —– buys, sells and transfers mint none —– and non-transferable (its dep…account that casts the ballot —– and a member’s first vote cou…m that holdings do not matter —– t is a straight multiplier, so a bag still counts —– but a large bag alone cannot … and exit are the same number.

References - Jupiter DAO gov…ortal (https://vote.jup.ag/) —– staking, voting, and Active S…/user-docs/more/dao/staking) —– the 7-day unstake cooldown an…-date-memecoin-drop-planned) —– the 31 Jan 2024 launch, 10 bi…s-will-go-to-token-buybacks) —– the 26 Jan 2025 announcement …uses-dao-voting-until-2026/) —– the 20 June 2025 pause of DAO voting until 2026.

When a DAO pauses itself On 2…e not penalized for the pause.Jupiter framed the halt as a r…ecosystem’s most-watched DAOs.

How Caper approaches this Jup…erns also settles the way out.The vote token is DIVISIBILITY…l until it has started voting.Participation does not need a … and exit are the same number.

How Caper approaches this Jup…inted one per ballot cast and 0.01 per XRD of gross trade value on each leg of a trade,by nothing else — buys, sells and transfers mint none — and non-transferable (its dep…d for a reward – it is minted only to the account that traded or voted, and only therecasts the ballot — and a member’s first vote c…eshly-arrived capital carries little weightno weight at all until it has started voting. Participation does not need … and exit are the same number.

How Caper approaches this Jup…cipation that cannot be bought off another holder, borrowed, or farmed for a reward – it is minted to the account that traded or voted, and only there — and a member’s first vote co… and exit are the same number.

How Caper approaches this Jup…he vote token is DIVISIBILITY_NONEMAXIMUM, minted one per votballot cast and 0.01 per XRD of gross trade value on each leg of a trade, and non-transferable (its d… and exit are the same number.

Name Jupiter (JUP DAO) Type P…s to holders who actually vote — currently paused until 2026. Voting was paused from June 2025 and resumed in early 2026 under a narrowed remit Founder Pseudonymous, known … a stated “breakdown in trust” — before restarting it in 2026 with Work Groups abolished

The restart, and what did not come back Governance resumed in early 2026, but not as it was. Jupiter disbanded every Work Group and narrowed the DAO's remit (https://solanafloor.com/news/jupiter-dao-announces-structural-overhaul-to-refocus-on-high-impact-governance) to proposals that touch tokenomics and treasury directly — revenue allocation, supply control, long-term token strategy. The everyday budgeting the old DAO spent most of its votes on is simply no longer a governance question. That is the reset in one line: fewer things are voted on, and the things that remain are the ones where a token vote is hardest to argue against. The first real test came in February 2026 with “Going Green”, a proposal to drive net-new JUP emissions to zero for the rest of the year by postponing the Jupuary airdrop, pausing team vesting and buying out the legacy Mercurial vesting (https://solanafloor.com/news/jupiter-weighs-plan-to-drive-jup-token-emissions-to-net-zero) . Holders were given the status quo as the explicit alternative. Voting ran 17–21 February and closed on 22 February with roughly 75% for Net Zero and 25% for continuing the airdrop (https://crypto-economy.com/jupiter-proposes-going-green-plan-to-achieve-zero-net-jup-emissions-in-2026/) ; more than 81% of large-holder voting weight backed the same side (https://solanafloor.com/news/over-81-of-whale-voting-weight-backs-zero-emissions-in-jupiter-dao-vote) . The 2026 Jupuary allocation was cut from a planned 700 million JUP (https://coinmarketcap.com/top-stories/69dafdda3b10291756db57cd/) and the withheld tokens returned to Jupiter's community-controlled multisig. It is worth being precise about what that vote demonstrates, because it cuts both ways. A DAO that had declared its own governance broken came back and used a token vote to cancel a payout to its own token holders — the outcome a purely rent-seeking electorate is supposed to be incapable of reaching. But the whale-weight figure tracking the headline result so closely is the older problem restated: a 75% result that is also an 81% large-holder result tells you less about the electorate than it looks like it does. The narrowing is what changed; the capital-weighted (/wiki/dao-governance/concepts/voting/token-weighted-voting) basis of the vote did not.

Solana’s aggregator and one of… which low turnout (/wiki/daos-governance/concepts/analysis/how-daos-fa…tal-weighted voting (/wiki/daos-governance/concepts/voting/token-weighte…s are a direct response to it.

Active Staking Rewards: paying…o the voter-apathy (/wiki/daos-governance/concepts/voting/voting-and-de…hing that governance pays for.

The Litterbox: turning protoco…ol-owned-treasury (/wiki/daos/organizations/stablecoins/olympusdao) desig…inflationary reward (/wiki/daos-governance/concepts/treasury/dao-treasury-management) that funds ASR.

When a DAO pauses itself On 2… the failure modes (/wiki/daos-governance/concepts/analysis/how-daos-fa…ecosystem’s most-watched DAOs.

How Caper approaches this Jup…s earned soulbound (/wiki/daos-governance/concepts/membership/soulbound…e treasury at exit (/wiki/daos-governance/concepts/membership/rage-quit… and exit are the same number.

Solana’s aggregator and one of… turnout (/wiki/daos/concepts/analysis/how-daos-fail) and capital-w…d voting (/wiki/daos/concepts/voting/token-weighted-voting) become…s are a direct response to it.

Active Staking Rewards: paying…hy (/wiki/daos/concepts/voting/voting-and-delegation) problem that…hing that governance pays for.

The Litterbox: turning protoco…ol-owned-treasury (/wiki/daos/organizations/stablecoins/olympusdao) designs: value is…y reward (/wiki/daos/concepts/treasury/dao-treasury-management) that funds ASR.

When a DAO pauses itself On 2…re modes (/wiki/daos/concepts/analysis/how-daos-fail) playing out at…ecosystem’s most-watched DAOs.

How Caper approaches this Jup…oulbound (/wiki/daos/concepts/membership/soulbound-tokens) votes v, ov…at exit (/wiki/daos/concepts/membership/rage-quit-and-exit-rights) , a… and exit are the same number.

Name Jupiter (JUP DAO) Type Protocol DAO (Solana DEX aggregator and launchpad) Governance token JUP — 10 billion total supply, launched 31 Jan 2024 Product Solana’s largest swap aggregator, plus perps, a launchpad, and related products Governance model Stake JUP to vote; Active Staking Rewards (https://vote.jup.ag/) pay quarterly rewards to holders who actually vote — currently paused until 2026 Founder Pseudonymous, known as “Meow” Notable for One of the largest airdrops in Solana’s history, paying stakers to vote, and then pausing its own DAO in 2025 over a stated “breakdown in trust”

Jupiter is the dominant swap aggregator on Solana (https://solana.com/) and the issuer of the JUP governance token. Its governance story is unusually instructive because it runs to both extremes: Jupiter built one of the more thoughtful token-voting systems in the industry — it pays quarterly rewards to holders who actually vote rather than merely hold — and then, in June 2025, it paused that governance entirely, telling its own community that the current structure was not working and that trust had broken down. Few DAOs make the case against their own governance as plainly. This page covers how JUP governance is meant to work, the buyback program that now anchors the token, and the 2025 pause. Every claim links to Jupiter’s own documentation or primary reporting.

Solana’s aggregator and one of its biggest airdrops Jupiter routes trades across Solana’s liquidity venues to find the best execution, and by volume it is the chain’s leading aggregator. The JUP token launched on 31 January 2024 with a total supply of 10 billion, distributed 40% to airdrops, 40% to the team and investors, 10% to a treasury, and 10% to a foundation ( Blockworks (https://blockworks.com/news/jupiter-airdrop-tokenomics) ). The first airdrop sent roughly 1.35 billion JUP to nearly a million wallets — one of the largest distributions in Solana’s history — and the project has continued the “Jupuary” airdrops in subsequent years ( The Block (https://www.theblock.co/post/272800/jupiter-jup-token-launch-date-memecoin-drop-planned) ). The scale matters for governance: a token spread across a million wallets is exactly the setting in which low turnout (/wiki/daos/concepts/how-daos-fail) and capital-weighted voting (/wiki/daos/concepts/token-weighted-voting) become the central problem, and Jupiter’s design choices are a direct response to it.

Active Staking Rewards: paying holders to actually vote To vote in the Jupiter DAO you first stake JUP, which locks the token in the governance contract and grants voting power ( Jupiter documentation (https://docs.jup.ag/user-docs/more/dao/staking) ). Staked holders who participate in votes then earn Active Staking Rewards (ASR), distributed each quarter and weighted by how long the stake has been held. Crucially, ASR rewards voting, not mere holding: a staker who never votes forfeits the rewards, which is Jupiter’s answer to the voter-apathy (/wiki/daos/concepts/voting-and-delegation) problem that hollows out most token DAOs. Unstaking triggers a mandatory 7-day cooldown that “cannot be skipped or accelerated” — a deliberate guard so nobody can stake just before a distribution, claim, and unstake without any sustained commitment. The rewards pool has run at roughly 50 million JUP per quarter ( vote.jup.ag (https://vote.jup.ag/) ). It is one of the more coherent attempts in the industry to make participation, rather than balance, the thing that governance pays for.

The Litterbox: turning protocol fees into buybacks At its “Catstanbul” event on 26 January 2025, founder Meow announced that Jupiter would direct 50% of protocol fee revenue to buy JUP back from the open market, holding the repurchased tokens in a long-term reserve nicknamed the “Litterbox”; the other half funds growth and operations ( The Block (https://www.theblock.co/post/337071/jupiter-spikes-40-as-founder-says-50-of-fees-will-go-to-token-buybacks) ). By late 2025 the Litterbox had accumulated on the order of 130 million JUP, around 4% of circulating supply, and as part of a 2025 “Fresh Start” the DAO put the repurchased stack up for a burn vote ( Jupiter (https://x.com/JupiterExchange/status/1983973510918893730) ). A fee-funded buyback places Jupiter in the same lineage as protocol-owned-treasury (/wiki/daos/olympusdao) designs: value is meant to accrue to the token from real revenue rather than from emissions — the mirror image of the inflationary reward (/wiki/daos/concepts/dao-treasury-management) that funds ASR.

When a DAO pauses itself On 20 June 2025, Jupiter did something few large DAOs have done: it halted all DAO voting until 2026, stating that “the current DAO structure isn’t working as intended” and citing a breakdown in trust between the DAO, holders, and team. Team member Kash Dhanda described the ecosystem as “stuck in a negative feedback loop” ( CoinDesk (https://www.coindesk.com/business/2025/06/20/solana-dex-jupiter-pauses-dao-votes-citing-breakdown-in-trust) ; DL News (https://www.dlnews.com/articles/defi/solana-exchange-jupiter-pauses-dao-voting-until-2026/) ). No new DAO-funded Work Groups would be created, though ASR continued at its 50-million-JUP-per-quarter rate so that stakers were not penalized for the pause. Jupiter framed the halt as a reset rather than a retreat — a “Fresh Start” to scale back a governance apparatus that had grown adversarial and rebuild it on simpler terms. It is a candid admission that token-holder governance, even with paid participation and one of Solana’s deepest communities, can become a net drain on a project rather than a source of legitimacy — the failure modes (/wiki/daos/concepts/how-daos-fail) playing out at one of the ecosystem’s most-watched DAOs.

How Caper approaches this Jupiter’s trajectory is the strongest possible argument for the problem Caper (/wiki/foundations/what-is-a-caper) is built around. Jupiter did more than most to make governance work — it paid holders to vote through ASR — and still concluded that its DAO had become a liability worth pausing. Two structural facts drove that outcome: participation had to be subsidized with fresh emissions because it was extrinsic to the vote, and a JUP-weighted vote is still a vote bought on a market, so influence tracked capital rather than commitment. Caper folds a different quantity into the weight. A caper member’s vote weight is (t·v)/(V·T) — held tokens t times the member’s earned soulbound (/wiki/daos/concepts/soulbound-tokens) votes v, over supply V and circulation T — computed by the contract’s compute_vote_weight helper and reused verbatim by exit() to size a member’s treasury share, so the same metric that governs also settles the way out. The vote token is DIVISIBILITY_NONE, minted one per vote, and non-transferable (its depositor role is bound to the component’s own global_caller and its updater is deny_all), so v is an accumulated record of participation that cannot be bought, borrowed, or farmed for a reward — and a member’s first vote counts for nothing, so freshly-arrived capital carries little weight. Participation does not need a quarterly subsidy because it is the weight, and there is no separate ASR emission to fund. This is not a claim that holdings do not matter — t is a straight multiplier, so a bag still counts — but a large bag alone cannot capture control, because the second factor has to be earned one vote at a time. And because that earned standing also sets each member’s claim on the treasury at exit (/wiki/daos/concepts/rage-quit-and-exit-rights) , a member who loses trust can leave with their fair share rather than force the whole DAO to pause; voice and exit are the same number.

References - Jupiter DAO governance portal (https://vote.jup.ag/) — staking, voting, and Active Staking Rewards. - Jupiter documentation — Staking (https://docs.jup.ag/user-docs/more/dao/staking) — the 7-day unstake cooldown and quarterly time-weighted ASR. - Blockworks (https://blockworks.com/news/jupiter-airdrop-tokenomics) and The Block (https://www.theblock.co/post/272800/jupiter-jup-token-launch-date-memecoin-drop-planned) — the 31 Jan 2024 launch, 10 billion supply, and airdrop allocation. - The Block (https://www.theblock.co/post/337071/jupiter-spikes-40-as-founder-says-50-of-fees-will-go-to-token-buybacks) — the 26 Jan 2025 announcement that 50% of fees fund JUP buybacks (the “Litterbox”). - CoinDesk (https://www.coindesk.com/business/2025/06/20/solana-dex-jupiter-pauses-dao-votes-citing-breakdown-in-trust) and DL News (https://www.dlnews.com/articles/defi/solana-exchange-jupiter-pauses-dao-voting-until-2026/) — the 20 June 2025 pause of DAO voting until 2026.