Solana-based decentralized exchange Jupiter DEX has officially announced a pause in DAO governance voting until the end of 2025, citing structural flaws and a breakdown in trust within its decentralized governance model. The platform aims to return in 2026 with a revamped and unified approach to community-led governance.
DAO Governance Pause Reflects Deeper Issues
Jupiter executive Kash Dhanda shared the update on X, stating that the current DAO structure “isn’t working as intended.” According to Dhanda, instead of fostering collaboration between the community, token holders, and the core team, the system has fallen into a “negative feedback loop” fueled by mistrust and fear.
“We hear the complaints. We see the breakdown in trust. We feel the perpetual FUD cycle that grows with every vote,” Dhanda wrote.
In response, the team decided to pause all DAO votes for the remainder of 2025, with plans to relaunch the governance model in 2026 in a way that “unifies, rather than divides” the community.
This move mirrors a recent decision by Yuga Labs, which also scrapped its ApeCoin DAO structure earlier this month due to inefficiencies and growing community friction.
Staking Rewards Continue, but No New Work Groups
While DAO voting is suspended, Active Staking Rewards (ASR) will continue unchanged at 50 million JUP per quarter. However, no new DAO-funded Work Groups will be created, meaning no additional emissions from those initiatives during the pause period.
This has raised questions among investors about the utility of JUP tokens throughout 2025. One user asked, “So $JUP in 2025 is useless except staked for ASR?” Dhanda’s reply was brief but hopeful: “Stay tuned on that.”
Market Reaction and Price Outlook
Despite the governance freeze, JUP price remained relatively stable following the announcement, trading around $0.405 on Friday. The token is still down 21.8% over the past 30 days, reflecting the broader weakness across the crypto market.
With DAO operations suspended, investors will closely watch for new announcements about Jupiter’s future governance plans and any additional updates regarding JUP token utility.
Final Thoughts
The pause in DAO votes signals a critical transition phase for Jupiter DEX, as it attempts to restore unity and rebuild trust within its ecosystem. The success of this governance overhaul in 2026 could play a defining role in the platform’s long-term position within the DeFi space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.