Jupiter, Solana’s largest DEX aggregator by swap volume has announced an airdrop to reward the project’s early backers. The airdrop will see the community-focused project distribute 4 billion JUP tokens out of its total supply of 10 billion tokens, in four phases. This is a major statement of confidence by Jupiter, and will almost certainly trigger substantial investor action around JUP.
Notably, Jupiter’s pseudonymous development team will share part of another 40% of the JUP supply, with the other part going to the reserve. The remaining 20% will be subjected to a token sale.
Who qualifies for the airdrop?
As a DEX swap aggregator, Jupiter helps traders get their assets at the best prices, with minimal slippage. It has established itself as the best-performing project on Solana, and recorded about $1 billion in trading volume in October. For Jupiter, the loss of Serum following FTX’s collapse was a blessing, as it cleared the way for Solana to try out the project’s potential. This has paid off, and there is growing confidence that Jupiter could grow into something bigger.
As per the airdrop schedule, the first phase of the JUP airdrop will start next week. Protocol users with a minimum of $1,000 in swap trading volume will share 1 billion JUP tokens during this phase. This will see 955,000 wallets get rewarded, as per a snapshot taken on November 2nd.
There are different tiers of users to be rewarded depending on the volume of user swaps done up to the cut-off date. In addition, JUP token holders will have voting rights in the governance of the project, and the development team has promised airdrops for future token holders. Users will be able to check their allocation amounts starting next week when the airdrop website goes live.
What does this mean for Solana?
After a prolonged period of headwinds driven by security concerns, Solana struggled and fell below $20 mid this year. However, a change of fortune has seen SOL climb over $176% in the last month, and was trading at $64.46 at the time of writing. With Solana on a steady ascent, the airdrop will add to the positive investor sentiment around not only JUP token, but also SOL.