- The members of Jupiter Dao say that the Project team holds too much power.
- The founder Ming NG discussed criticism on behalf of the other members of the team.
- This is not the first time that Jupiter’s team has faced criticism from the DAO.
The members of Jupiter Dao, the Crypto collective which governs the exchange based in Solana, complain about the quantity of influence that the project team has on its decentralized governance structure.
They say that team members use the important JUP governance token of the project token in the project they received within the framework of their compensation packages to unfairly influence governance votes.
Consequently, the members of the team undermine decentralization.
“Team members are the creators of votes, and if they hold such a quantity of JUP token and are allowed to vote, they can easily influence the results in their favor,” said Cetisfun, a pseudonym participant of Jupiter Dao governance, in a Wednesday article on the Jupiter governance forum.
“It is completely false and unacceptable. Honestly, I am shocked that team portfolios have such a massive quantity of JUP with the voting rights. ”
DAOs, or decentralized autonomous organizations, are a model of popular governance among cryptographic projects.
They work by leaving the holders of negotiable tokens to offer and vote on the changes of a DEFI protocol and how it should allocate funds.
While the DAOs try to distribute the voting power uniformly in their communities, in practice, many are often led by small groups of rich and powerful players. Jupiter is not the only DEFI protocol fights against the accusations of de facto centralization.
On June 4, the representative Sean Casten spoke of a recent quarrel on the level of centralization of governance at the United UNISWAP DAO at a convention audience.
The testimony highlighted complex governance practices at work in the DAOs and has raised questions about how legislators can legally define decentralization when they consider industry legislation.
A “defective” model?
In Jupiter Dao, the recent dust started on June 6 when Buddychaddi, a pseudonym DAO participant, underlined a member portfolio of the Jupiter team who had used more than 24 million JUP tokens to vote on a recent DAO proposal.
“I am not against the team that has an allowance, they worked hard all these years and built Jupiter from zero,” said Buddychaddi in an article in the Jupiter Governance Forum entitled “Defective governance”.
“But the problem is that their stake is relatively great in terms of the influence of the DAO.”
Jupiter launched his JUP token in January 2024, offering 200 million tokens to first users via an air card. Jupiter team members received 20% of the offer.
Team members who receive large quantities of a project token are not uncommon.
These tokens are generally acquired, cryptographic language to be locked up – unable to be sold on the market – and released on a predetermined calendar which often extends several years.
Although chips are acquired, they generally cannot be used to win additional rewards or vote on DAO governance proposals.
But for JUP, acquired tokens can be used to participate in governance votes and marked out to earn even more tokens, said the co-founder of Jupiter, Ming NG, better known online under the name of Weremeow, in a governance forum post responding to Buddychaddi critics.
The co-founder of Jupiter assured the members of DAO that he and his colleague co-founder Siong NGO would not participate in DAO votes, but said that a third nameless co-founder would continue to vote, but would cease to accumulate stimulation rewards.
In the last governance vote of Jupiter Dao, a portfolio controlled by the anonymous member of the Jupiter team represented more than 4.5% of all the votes expressed.
More controversy
This is not the first controversy to arrive at the founders of Jupiter.
In March, NG proposed that 280 million of its acquired JUP be divided between 65 new team members in exchange for a bonus of 220 million tokens – worth around 94 million dollars – of the DAO community reserves.
The vote was adopted with 63% of participants in favor. However, some DAO members criticized the size of the remuneration package and argued that it was improper use of the DAO funds.
In March 2024, the founders of Jupiter attracted a considerable reaction on a budget proposal, which was then adopted, to spend $ 7 million for the wages of four team members.
Tim Craig is the DL News -based correspondent, based in Edinburgh. Handle with advice onTim@dlnews.com.
