Why Would Anyone Reduce The Supply of Tokens?

TL;DR

• The co-founder of Jupiter, Meow, simply posted a proposal about altering the tokenomics of JUP by lowering the whole provide from 10B to 7B JUP tokens.

Full Story

The co-founder of Jupiter, Meow, simply posted a proposal about altering the tokenomics of JUP.

In case you thought that sentence meant one thing about an interplanetary cat with cash, we obtained you (though it’s not that removed from the reality).

Right here’s what it means:

JUP is the token that powers the Solana-based decentralized alternate aggregator, Jupiter.

Meow, Jupiter’s co-founder, simply proposed that: as a substitute of getting a complete provide of 10 Billion JUP tokens, the whole provide needs to be diminished by 30%, all the way down to 7 Billion JUP tokens.

(There have been a couple of different concepts in the proposal as properly however let’s dig into this one).

Why would anybody wish to scale back the whole provide of tokens?

You understand how the Fed retains printing cash? Making the worth of each US Greenback price only a tiny bit much less with each greenback that will get printed?

That is like the alternative of that.

JUP already has a set provide (which is one step forward of each fiat foreign money that exists right this moment) however the thought right here is to cut back the whole mounted provide by 30%, in the end making every JUP token price a bit extra.

However are you able to simply do this? You’ll be able to simply change the ‘10’ to a ‘7’?

Properly the proposal nonetheless has to go to a vote – and that vote is occurring in July – but when it will get authorised by the neighborhood (the JUP token holders who vote), then sure, with approval, the Jupiter crew can change the whole provide from 10B to 7B.

Simply one other cool idea, solely in crypto.