Jupiter DEX Freezes DAO Votes Until 2026 for Growth

Key Points:

• Jupiter pauses all DAO governance voting, citing internal friction and need to prioritize rapid execution.
• Staking rewards continue, but no new JUP incentives or proposals will be issued until 2026.
• DAO pause follows backlash over insider voting power and controversial token allocation decisions.

Solana-based decentralized exchange aggregator Jupiter has officially paused all decentralized autonomous organization (DAO) voting until at least January 2026. The decision was announced by chief operating officer Kash Dhanda, who cited the need to shift focus toward product development and growth.

According to Dhanda, “the DAO is stuck in a negative feedback loop,” which has slowed down execution and caused friction within the community. The announcement follows increasing criticism over governance practices, including perceived overreach by insiders and controversial vote outcomes.

Jupiter Community Expresses Concerns Over Centralized Influence

The freeze comes amid backlash from DAO participants over voting power distribution. Reports indicated that one project team cast over 4.5% of votes in a single proposal, and Jupiter insiders collectively control about 20% of the native JUP token supply. This raised concerns about fairness and decentralization.

Earlier in the year, a proposal granting co-founder Ming Ng a 220 million-JUP bonus passed despite community resistance. Another vote approved $7 million in salaries for four team members. Critics say such decisions eroded trust in the DAO structure.

While governance voting is on hold, staking rewards remain active. Jupiter will continue distributing 50 million JUP per quarter to stakers. However, there will be no new token emissions for governance incentives or DAO workgroup budgets. Existing workgroups funded before the freeze will remain in operation.

Dhanda emphasized this is not a full shutdown of governance. 

“To repeat: this is not an end to governance, but rather a pause,” he said. 

The development team plans to work on a new governance model in the meantime, aiming for a more unified structure.

Jupiter Token Slides Amid DAO Suspension and Market Decline

The price of JUP, Jupiter’s native token, was trading at $0.3972 after the announcement, reflecting a 50% decline year-to-date. The drop mirrors the broader correction in altcoins, which have experienced reduced investor interest during ongoing market uncertainty.

Source: Coingecko

Jupiter’s move follows similar actions in the crypto space. Earlier this month, Yuga Labs proposed dissolving the ApeCoin DAO and replacing it with a new structure due to similar governance concerns. That proposal, like Jupiter’s, criticized DAO inefficiency and the rise of low-impact initiatives.