Posted February 1, 2024 at 5:58 pm EST.
Ethereum enthusiasts and Solana devotees have been trading insults over one of the key mechanisms used in the airdrop for Solana-based decentralized exchange aggregator Jupiter.
Jupiter’s LFG Launchpad is a portal where traders can claim their airdrop distribution and use services to facilitate the trading of newly issued tokens. In the instance of the JUP airdrop, Jupiter traders can claim their airdrop allocation of JUP in addition to acquiring more tokens at launch by presetting limit orders or dollar cost-averaging functions.
When traders acquire more tokens through Jupiter’s LFG Launchpad, they are engaging with a single-sided liquidity pool that initially only had JUP. When the airdrop went live, traders were able to withdraw JUP from the pool and deposit USDC.
Read More: Jupiter Traders Claim Whopping 545 Million JUP Tokens in First 8 Hours of Airdrop
Of JUP’s 10 billion total token supply, the Jupiter team allocated 250 million JUP for the single-sided liquidity launch pool and 100 million JUP for the launchpad fees, according to a forum post written by Meow two days ago that detailed JUP’s token genesis event.
This means traders, who purchase tokens through Jupiter’s launchpad infrastructure, are acquiring JUP directly from the 250 million pot that the Jupiter team earmarked for the liquidity pool on its airdrop launch page. On Thursday, Meow said on X that Jupiter’s core members will in a week take the USDC and JUP inside the liquidity pool and place the funds into the team treasury.
Moreover, 75% of the 100 million JUP allocated as LFG launchpad fees is dedicated to the coming JUP DAO and the remaining 25% is for the Jupiter core team.
While people from the Solana ecosystem have praised Jupiter and its founder Meow for how Jupiter’s core members designed and conducted its airdrop, members of the Solana-rival pro-Ethereum camp had harsh words for the decentralized exchange aggregator.
Ethereum Crowd’s Takeaway
Critics cite Jupiter and its founder Meow on two elements of Jupiter’s airdrop infrastructure: the team having 250 million JUP tokens to sell and the Jupiter ecosystem keeping 100 million JUP tokens fee for launching on their own launchpad.
Ethereum enthusiasts have raised concerns about the Jupiter team selling tokens to the public through the token launch pool, immediately following its airdrop going live. A strategic advisor for liquid staking provider Lido and Ethereum research firm Flashbots, who goes by “Hasu,” said on X that Jupiter selling the 250 million JUP tokens for stablecoin USDC is a “Truly remarkable grift” and “One for the textbooks.”
In reference to the launchpad fee of 100 million JUP tokens that will end up in the pockets of the JUP DAO and the core team, Paul Dylan-Ennis, a lecturer in the College of Business, University College Dublin who writes about Ethereum culture, said on X, “This is Solana’s ICO era of absolute trash.”
Solana Crowd’s Pushback
Those defending Jupiter argue that the information about the 250 million JUP tokens for the launchpad liquidity pool and the 100 million JUP tokens for the launchpad fee has been publicly accessible for months.
Mike Dudas, general partner at 6th Man Ventures, expressed sarcastic outrage about Jupiter’s transparency. “I, for one, am extremely outraged that @weremeow and @JupiterExchange launched their token in the exact manner they said they would after sharing the methodology in excruciating detail across numerous communication methods for multiple months,” he shared on X.
Read More: Jupiter’s Airdropped Token JUP Debuts at a $878 Million Market Cap
Solana enthusiasts also took the opportunity to use ad hominems to call out Ethereum loyalists. One X user in a tweet about Jupiter’s controversy said, “0xdumbass.eths are crying – thats just what they do — ignore them.” Another said, “ETH Maxis can cry all they want and make unfounded statements… having haters comes with the territory.”
Meow defended Jupiter’s decision to allocate 250 million JUP tokens inside the launchpad liquidity pool. “By doing it this way, airdrop recipients get a massive pool to constantly sell into, while prospective buyers have assurance that there is a big pool to absorb big selling pressure from airdrops that will cause them immediate massive rekt,” wrote Meow on X.
Rivalry Going Back Years
The back-and-forth between supporters of Solana and Ethereum is the latest development in the rivalry between the two blockchain networks. For years, people have referred to Solana as the “Ethereum killer,” but Ethereum has been the incumbent leader for blockchain networks with smart contract functionality. While Solana has historically trailed Ethereum — falling further behind during the collapse of the crypto exchange FTX — in the past few months, Solana has made a comeback. It’s been successfully challenging Ethereum’s dominance in terms of several metrics such as a thriving memecoin ecosystem and trading volume on decentralized exchanges.
This news is republished from another source.
