Key Points:

• The Jupiter DEX will pause DAO voting until the end of 2025 due to its structural issues and aims to return with a more cohesive governance model in 2026.
• No new DAO-funded Work Groups will be initiated, although staking rewards will continue at 50 million JUP quarterly.
• The JUP price has depreciated by 21.8% over the last month but remains stable after this announcement, currently trading at $0.405.

The decentralized exchange Jupiter, built on the Solana blockchain, has declared a suspension of its DAO voting process until the conclusion of 2025, asserting that the current system is not functioning effectively. Kash Dhanda, an executive at Jupiter, declared this in a post on X, indicating that the protocol is experiencing a ‘critical period’ where the future of decentralized finance (DeFi) is being defined.

To capitalize on this opportunity, Dhanda stated that all DAO voting will be paused, with governance expected to be restructured in 2026 to unify rather than divide. He noted, “The current DAO structure isn’t working as intended. We hear the complaints. We see the breakdown in trust. We feel the perpetual FUD cycle that grows with every vote.” Instead of fostering collaboration among holders, the team, and DAO, they find themselves trapped in a negative feedback loop.

This decision resembles that of Yuga Labs, which recently abandoned its ApeCoin DAO framework due to inefficiencies. Logistically, existing staking rewards will persist at 50 million JUP per quarter; however, the creation of new DAO-funded Work Groups will cease, leading to no further emissions.

One investor expressed apprehension on social media, questioning the utility of $JUP in 2025 given the focus on staking for active staking rewards. Dhanda hinted to this inquiry to ‘stay tuned’. The recent announcement led to a 21.8% decline in JUP’s value over the preceding month as the broader cryptocurrency market struggles to break out of a tight trading range.