Jupiter Alternate has come below hearth from the neighborhood after asking customers to submit a seed phrase to their Jupiter pockets with the intention to obtain ASR rewards for his or her staking exercise throughout the fourth quarter.
Jupiter, a Solana-based decentralized crypto alternate aggregator, has shocked the neighborhood by elevating safety considerations concerning pockets seed phrases. DEX launched ASR rewards for stakers in This autumn. This required customers to export their seed phrases to Jupiter wallets to obtain rewards on cellular and desktop. This requirement sparked widespread concern as neighborhood members opposed the rule, citing severe security considerations round sending seed phrases.
Jupiter Alternate raises security pockets considerations for Web3 customers
🚨New: Group backlash ensued after @JupiterExchange launched ASR rewards for stakers in This autumn, requiring customers to import seed phrases into Jupiter wallets to assert through cellular or desktop. Some customers say it is not secure to power seed phrase export for small rewards… pic.twitter.com/owxTFG2xOm
— SolanaFloor (@SolanaFloor) January 31, 2026
Jupiter defended the requirement, saying the measure was vital to make sure truthful distribution of rewards and stop manipulation. Nonetheless, the dialogue facilities on the potential for exploitation and the burden on customers and long-term holders who might lose every little thing if a malicious attacker beneficial properties entry to their account. Based on Solana Flooring, the decentralized alternate responded to the criticism and stated it’ll introduce another methodology within the coming weeks for customers to assert ASR rewards from different wallets.
Jupiter has hosted an airdrop occasion, Jupuary, each January since 2024 as a part of its inside efforts to draw new customers and retain current customers. In 2024, decentralized exchanges distributed $1 billion $JUP Over $1 billion price of tokens might be despatched to over 1 million cryptocurrency wallets. In 2025, the alternate hosted its second airdrop occasion, distributing 700 million tokens to its loyal customers and stakers.
This yr’s ecosystem is deliberate The preliminary distribution quantity is 200 million $JUP 170 million tokens might be allotted to paying customers and 30 million to stakers. DEX additionally introduced that it will put aside $200 million $JUP Tokens as a bonus pool to carry and stake airdrops all through 2026.
This transfer was geared toward encouraging extra neighborhood members to carry as many tokens as potential and thwarting the promoting strain that usually follows airdrop occasions. The alternate additionally introduced that it had secured $300 million. $JUP Tokens for Jupnet incentives. The overall quantity of ASR Rewards token distribution occasions in January 2026 reached 700 million tokens. The alternate additionally introduced, $JUP It emphasised that stakers might be rewarded based mostly on time-weighted stakes, and the eligibility interval for paying clients will finish in January 2026.
Jupiter Revises Token Airdrop Provide From 700 Million Tokens To 200 Million Tokens
Nonetheless, in November 2025, Cryptopolitan reported Jupiter introduced that it has revised down its airdrop to Jupiter attributable to dilution considerations. This choice was made by a vote of neighborhood members following what occurred throughout the earlier Jupurely occasion in 2025.
The January 2025 occasion decentralized the ecosystem. $JUP Distribute tokens to everybody, together with new neighborhood members who had no intention of changing into a part of the neighborhood and its ecosystem in the long run. Because of this, many of those new individuals bought their tokens and $JUPvalue will plummet.
The brand new revision has reserved 200 million tokens out of the 700 million tokens scheduled for the January 2026 Jupuary occasion. The publication additionally famous that airdrop eligibility will change in response to the challenge’s DAO. The brand new revision allocates 25 million $JUP The remaining 175 million is reserved for customers who carry out paid actions within the Jupiter ecosystem.
Based on information From CoinMarketCap, Jupiter’s native crypto asset $JUP With a market capitalization of $648 million and a 24-hour buying and selling quantity of $57.22 million, it ranks 74th among the many largest cryptocurrencies. The crypto asset is buying and selling at $0.1994, down 90.24% from its all-time excessive of $2.04 set two years in the past.
