Jupiter Exchange, a leading decentralized trading aggregator on Solana, announced plans to allocate 50% of its protocol fees toward repurchasing and locking JUP tokens for three years, starting Feb. 17.

The initiative, which aims to reduce circulating supply and increase long-term stability, is part of Jupiter’s broader strategy to enhance platform sustainability and drive deeper engagement within the Solana ecosystem.

Shift from token burns to locked buybacks

The exchange will roll out a dedicated dashboard next week, offering transparency into its buyback operations.

The dashboard will provide real-time tracking of repurchased JUP tokens and their subsequent locking process, allowing community members to monitor the initiative’s impact.

Jupiter’s latest buyback effort follows a similar initiative in January, when the exchange used 50% of protocol fees to buy back and burn JUP tokens, contributing to a 60% increase in the token’s market value.

However, the shift from burning to locking suggests a long-term commitment to supply management rather than short-term price action. By locking the repurchased tokens for three years, Jupiter aims to align incentives with sustained platform growth while maintaining liquidity for active trading.

Expanding Jupiter’s presence

The buyback initiative follows key discussions at the recent Catbedsault Conference, where Jupiter executives detailed upcoming platform enhancements and hinted at potential acquisitions to strengthen its role within the Solana ecosystem.

The exchange has positioned itself as a major player in Solana’s DeFi space, facilitating efficient token swaps and liquidity aggregation for traders and developers.

Jupiter’s decision to introduce a structured buyback program mirrors broader trends in the crypto industry, where exchanges and protocols increasingly use supply control mechanisms to stabilize token value and incentivize user participation.

Major platforms have employed similar strategies, including Binance Smart Chain’s BNB burns and MakerDAO’s buyback-and-burn approach for MKR governance tokens.

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