Active Staking Rewards
The purpose of Active Staking Rewards (also known as ASR) is an innovative experiment to create a vibrant and virtuous cycle where Jupiter DAO's active voters gain increasing amounts of voting power early on - the more early and active you are in the process, ideally the more you will benefit.
About ASR
We want Jupiter DAO to become the best DAO in crypto and at the core of it, is an extremely active, distributed and involved voter base.
We developed a mechanism called ASR with these key objectives:
- Active Staking: Reward stakers who actively participate through voting and most importantly, engage.
- Committed Voters: ASRs are not meant to get people to lock their tokens but instead focused on growing a committed pool of voters to make key decisions together.
- Simplicity: Keeping it as simple as possible was key in onboarding a large userbase, as a majority of JUP holders are participating in governance for the first time.
The First ASR
In the first quarter, there were a total of 9 proposals, 3 of which are Trial Working Group proposals where each of its rewards are ⅓ of a proposal.
After the first quarter since the genesis of JUP and the Jupiter DAO, we conducted the very first ASR distribution in July. The ASR consists of 5 different tokens that were allocated during their respective LFG Launches: JUP, WEN, ZEUS, SHARK, UPT. The JUP token is part of ASR as JUP was launched on the LFG Launchpad as well, the fees generated from it was given to the DAO to redistribute in ASR - giving our active voters more voting power.
ASR Distribution Methodology
Each proposal (other than the 3 Trial WGs proposals) are allocated the same amount of total rewards, while the Trial WG proposals got ⅓ of those rewards.
| JUP | WEN | ZEUS | SHARK | UPT | |
|---|---|---|---|---|---|
| Total ASR Pool | 50,000,000 | 7,500,000 | 750,000 | 7,500,000,000 | 750,000 |
| Reward Pool per Proposal | 7,142,857.14 | 1,071,428.57 | 107,142.86 | 1,071,428,571.43 | 107,142.86 |
| Reward Pool for Trial WG Proposal | 2,380,952.38 | 357,142.86 | 35,714.29 | 357,142,857.14 | 35,714.29 |
We calculated ASR based on a Per Proposal Methodology:
- Determine voting activity: We look at which proposals you voted in and how much voting power you voted with.
- Calculating reward rates: Based on the total voting power of each proposal, we calculate the reward rate using the reward pool per proposal.
- Calculating user rewards: Based on the reward rates and your voting power of each proposal, we calculate how much rewards of each token you are allocated per proposal.
Dive deeper into the ASR Distribution Methodology.
Future ASR
ASR was initially bootstrapped with 100M JUP from the bootstrapping LFG Lanchpad fee.
- 50M distributed in Q2 2024 ASR
- 50M distributed in Q3 2024 ASR
We have since renewed ASR beyond these 2 quarters, using the unclaimed excess tokens from Jupuary 2024, to fund for 1 more year of ASR with 50M per quarter (the rest will eventually be returned to the community mulitisig). See the proposal for more information.