Solana DEX Jupiter Halts DAO Votes, Cites Governance Issues

Jupiter DEX Pauses DAO Votes Until 2026 to Reassess Governance Structure

  • Jupiter, a decentralized exchange (DEX) on Solana, will halt all DAO votes until late 2025.
  • Leadership says the current decentralized governance structure is not achieving its goals and is fueling ongoing discord.
  • DAO voting will resume in 2026 with what the team describes as a “unifying” new approach.
  • Ongoing staking rewards of 50 million JUP per quarter will continue, but no new DAO-funded projects will be launched during the pause.
  • JUP token has dropped 21.8% over the last month but remained stable at $0.40 following the announcement.

Jupiter, a major decentralized exchange (DEX) built on Solana, announced it will pause all decentralized autonomous organization (DAO) votes through the end of 2025. The move is aimed at reassessing its governance structure after admitting the current model is not “working as intended,” according to protocol executive Kash Dhanda.

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Dhanda shared in a post on X that Jupiter is in a critical phase for defining the future of decentralized finance (DeFi) and explained the need to stop DAO votes to focus on development. “The window to define the future of DeFi is open,” Dhanda said. He added that governance would return in 2026 “with a fresh approach that unifies, rather than divides.”

“The current DAO structure isn’t working as intended,” Dhanda wrote. “We hear the complaints. We see the breakdown in trust. We feel the perpetual FUD (fear, uncertainty, doubt) cycle that grows with every vote. Instead of the DAO, holders, and team working in cohesion… we are stuck in a negative feedback loop.”

The decision to pause decentralized decision-making follows a similar move by Yuga Labs, which recently shut down its ApeCoin DAO due to efficiency problems. Jupiter said logistics would remain unchanged for staking rewards, with active staking rewards (ASR) continuing at a rate of 50 million JUP tokens per quarter. However, no new DAO-funded work groups will form, and no new token emissions will occur during the pause.

One investor questioned on X whether JUP tokens in 2025 would only serve for staking rewards. Dhanda responded, “stay tuned on that.”

The JUP token, which powers the platform’s fees and governance, has lost 21.8% of its value in the past 30 days as broader crypto markets remain subdued. The announcement did not cause significant price changes, with JUP trading at $0.40 after the news.

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