🔥 Key Takeaways
- Jupiter Exchange’s $70 million token buyback campaign in 2025 failed to halt the JUP token’s decline.
- The JUP token has fallen 89% from its peak, emphasizing the limitations of conventional buyback strategies in a market with significant emissions and unlocks.
- Solana co-founder explains that the token’s structural selling and ongoing unlocks are major contributors to its downward pressure.
$70 Million Buybacks Failed to Save Jupiter: Solana Co-Founder Explains Why The Token Strategy Broke
Jupiter Exchange, a prominent decentralized exchange (DEX) on the Solana network, embarked on an ambitious $70 million token buyback campaign in 2025. Despite this substantial effort, the JUP token’s value continued to plummet, falling 89% from its peak. This dramatic decline has underscored the limitations of conventional buyback strategies in a market characterized by significant token emissions, ongoing unlocks, and structural selling.
The JUP token, which has faced immense pressure from a combination of factors, including a staggering $1.2 billion in upcoming unlocks, has been a case study in the challenges of managing token economics in a volatile market. The buyback campaign, while sizable, was unable to stem the tide of selling pressure, which has been exacerbated by large-scale token holders cashing out.
In a recent interview, a Solana co-founder provided valuable insights into why the buyback strategy failed. The co-founder highlighted that the token’s structural selling and the continuous influx of new tokens into the market due to emissions and unlocks played a crucial role in the token’s decline. “The token economy of JUP is fundamentally different from traditional assets,” the co-founder explained. “When you have a high supply of tokens coming in and a significant number of tokens being unlocked, it creates a perfect storm that even a large buyback cannot counteract.”
The co-founder also pointed out that the buyback strategy, while effective in the short term, is not a sustainable solution for long-term value retention. “Buybacks can provide a temporary boost, but they do not address the underlying issues of token supply and market sentiment,” they added. “To truly stabilize the token, a more comprehensive approach is needed, including strategic token burns, reduced emissions, and community-driven initiatives to lock up tokens.”
The failure of the $70 million buyback campaign serves as a cautionary tale for other projects in the DeFi space. It underscores the importance of robust tokenomics and the need for strategies that go beyond simple market interventions. For Jupiter Exchange, the focus now shifts to implementing more sustainable practices and engaging with the community to rebuild trust and confidence in the JUP token.
As the DeFi landscape continues to evolve, projects must adapt to the unique dynamics of their token economies. The lessons learned from Jupiter’s experience highlight the critical need for a multifaceted approach to token management, one that considers both short-term market conditions and long-term sustainability.
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