Jupiter, the decentralized exchange (DEX) on the Solana blockchain, is allocating a significant amount of funds to kickstart its Jupiter DAO. This includes $10 million in USD Coin (USDC) and 100 million of its native JUP token, which is worth a combined $137 million at the moment.
The purpose of this budget is to provide the DAO with the necessary resources to fund ideas using USDC, while also aligning long-term incentives with J.U.P Catributors through the JUP allocation. Jupiter plans to replenish this budget on an annual basis to ensure the DAO’s ability to execute important initiatives in the long run.
Additionally, Jupiter has raised the possibility of accepting additional contributions. The initial ecosystem funds are currently stored in a decentralized autonomous organization multisignature wallet, which is initially managed by three members. However, there are plans to expand access to more custodians in the near future. As part of the announcement, the Jupiter DAO wallet address has already been funded with separate transactions of USDC and JUP.
Jupiter is currently one of the most popular decentralized applications on the Solana blockchain, with a total value locked (TVL) of $381.49 million. This represents a month-over-month growth of 86%. At present, the DEX accounts for approximately 8% of the Solana ecosystem’s total TVL. The JUP token currently has a fully diluted market cap of $12.5 billion.
Solana’s SOL token has experienced significant growth over the past year, with a gain of 807%. This has propelled Solana to become one of the largest cryptocurrencies by market cap. A substantial portion of this growth can be attributed to the recent memecoin craze. For instance, on March 25, Jeo Boden (BODEN), a Solana memecoin parodying US President Joe Biden, surpassed a market cap of $250 million, with a 54% gain within 24 hours.
Related: Solana emerges as the leader in weekly stablecoin transfer volume.