Siong Ong, co-founder of Jupiter, publicly challenged the effectiveness of the protocol’s token buyback strategy, raising fresh questions about capital allocation and long-term tokenomics.
According to Siong, Jupiter spent more than $70 million on JUP buybacks throughout 2025, yet the initiative delivered minimal results in terms of price performance. Despite allocating as much as 50% of protocol fees toward repurchasing and locking JUP tokens, he noted that the token “obviously didn’t move much.”
Siong argued that the scale of spending did not translate into meaningful market support. JUP remains under heavy pressure, trading roughly 89% below its all-time high of $1.83. He suggested that the same $70 million could have been deployed more effectively toward user acquisition, retention incentives, and ecosystem growth rather than passive market support.
The comments mark one of the most direct internal critiques of Jupiter’s buyback policy to date. In an X post, Siong openly asked the community whether the protocol should suspend buybacks entirely and redirect funds toward building long-term network value.
Siong’s remarks arrived alongside similar signals from other crypto founders. Around the same time, Amir Haleem, CEO of Helium, announced that Helium would halt HNT buybacks to prioritize operational spending. The parallel moves reflect a broader industry reassessment of whether buybacks meaningfully support token value in weak market conditions.
The buyback debate follows several major tokenomics decisions made by Jupiter at the start of 2026. The protocol recently reduced its annual “Jupuary” airdrop from an initially planned 700 million JUP to 200 million JUP, aiming to limit dilution and reduce sell pressure.
In addition, the Jupiter DAO approved a burn of 130 million JUP from the “Litterbox” treasury in late 2025, a move designed to permanently reduce circulating supply.
While JUP’s price performance has lagged, Jupiter’s product expansion continues. The protocol recently launched Jup Lend, which surpassed $1.5 billion in total value locked by early January 2026. The contrast between strong product adoption and weak token performance has further fueled the debate over whether financial resources should prioritize growth over market interventions.
Siong’s comments place a spotlight on a growing tension across crypto protocols: whether buybacks genuinely support long-term value, or whether capital is better spent expanding real usage. The outcome of Jupiter’s community discussion could set a precedent for how other DeFi projects rethink token economics in 2026.
