Understanding Jupiter DAO Proposals
Many (not all) in the crypto world often reduce the tokens only to their $ value. But what we miss out on is the potential for a lot of other use cases. One of the such use-cases is changing the way people make decisions and work together - Decentralized Autonomous Organizations (DAO).
Imagine a workplace where every voice matters and decisions are made collectively, without hierarchy. That’s the promise of DAOs.
What is a DAO?
Think of a DAO as more of a way to organize people towards a common goal. - Solana.com
Unlike traditional organizations, DAOs do not have managers, hierarchy, or central authority. They are community-led organizations in which everybody has ownership and total transparency.
Nowhere is this more evident than in Jupiter DAO.
Governance - Everyone has a seat at the table
This is the heart of the Jupiter DAO — All the community members can make decisions about the direction of Jupiter's ecosystem. Decisions are made through collaborative voting.
When thousands of members are involved, a clear and efficient process is essential for achieving shared goals. And the process is quite simple in Jupiter DAO. (we will see in detail how to take part in Jupiter related decisions later in the essay)
The advantage of a DAO is that the decision-making happens in a tamper-proof way and in a transparent way. All the decisions are stored on-chain forever.
True to the ethos of crypto, DAOs have the potential to create systems that are fairer than those of traditional companies.
Role of JUP in Jupiter DAO: Empowerment through Tokens
JUP is the native token of Jupiter. However, it is not designed to be used in the ecosystem. JUP is much more than just a token.
It’s not about transactions; it’s about governance.
JUP’s purpose is to be used for community engagement and empowering members within Jupiter DAO. Holders can participate in the decision which shapes the Jupiter ecosystem. Through on-chain governance, the JUP token represents the voice of each community member.
What are proposals?
Proposals are the formal suggestions aimed at deciding a course of action. A vote-based decision is made by the community members and then it is executed based on the result of the votes.
Proposals usually have a goal and the need of an action. Few of the past proposals in Jupiter DAO where community has taken a decision have been:
- JUP Mobile Background Vote - To decide on what should be Jupiter Mobile background among 6 options
- Supply Reduction Proposal - To decide on reducing the supply of JUP tokens by 30%
How to participate in a Vote?
To participate in a vote, holders need to have JUP staked. There is no minimum JUP needed to be eligible to participate in the voting process. You can vote even if you have staked 1 JUP.
Staking is also available on vote.jup.ag.
Steps:
- Select the amount of JUP you want to stake
- Click on Stake
Voting power
Now that you have staked some JUP you have voting power.
There can be many ways to define the voting power of each token. It can be 1 vote per token, weighted votes, 1 vote per wallet etc.
In Jupiter DAO, 1 Staked JUP = 1 vote. So more staked JUP means more voting power linearly.
You can unstake after 30 days. During the unstaking period, if you vote your voting power reduces linearly.
Voting in a Proposal
You can see all the live as well as past proposals at vote.jup.ag
The best part is that Jupiter voting has a simple user-friendly interface with all the required details — proposal summary, start date, end date, progress updates etc.
Currently, there is a proposal about Jupuary Vote live till 29 November 2024.
Steps to access this specific proposal in vote.jup.ag,
- Scroll down to the Proposals section
- You will see “J4J #3: Jupuary Vote 1" with “Active” status
- Click anywhere on the proposal to get the detailed page
- You will also see a banner at the top for this proposal
After you have read the proposal and have finalized your decision, then
- Select the option you want to vote for
- Click on Vote
There can be a minimum number of votes needed for each proposal to have a valid result. The minimum requirement is known as Quorum. This is to ensure there is enough participation and to prevent manipulation by a small group of people holding large amounts of tokens (aka whales).
For example -
- Quorom - 30%.
- Total staked tokens - 100,000
- Votes are needed for the decision to be valid - 30,000
Please note - You can also change your vote.
You have the freedom to change your vote before the voting period ends of a live proposal. The below screenshot shows the change of vote from No to Yes.
After casting your vote, you might wonder: what happens next?
Time for Results
Depending on the result, the actions are then carried out. If the proposal fails to get the go-ahead, then usually it is refined based on suggestions from the community. It can be set up again for the voting.
Where to know about upcoming votes?
Keep an eye on the below to get updates on upcoming proposals:
- Discord: https://discord.gg/jup
- JUP X handle: https://twitter.com/JupiterExchange
- JUP DAO X handle: https://x.com/jup_dao
- jupresear.ch
Will you take a seat at the table?
The power of Jupiter DAO lies in its community — you.
Do read about the proposal in details and engage with fellow community members to discuss the pros and cons of each option. And then decide on what you think is the best decision.
Jupiter team has lot of ambitious plans and we as community members can contribute to shaping the future.
For any feedback or suggestion please reach out to me @its0xRay on X or Discord. If you found this essay helpful, do consider sharing it with your friends who may be interested in exploring the products.
