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Reading: Jupiter Exchange faces backlash over seed phrase requirement for ASR rewards
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Your Crypto News Today > News > Crypto > Altcoins > Jupiter Exchange faces backlash over seed phrase requirement for ASR rewards
Altcoins

Jupiter Exchange faces backlash over seed phrase requirement for ASR rewards

February 6, 2026 5 Min Read
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  • Jupiter Change raises security pockets issues for Web3 customers
  • Jupiter revises the token airdrop provide from 700M to 200M tokens

Jupiter Change is dealing with group criticism after urging customers to submit their seed phrases to the Jupiter pockets to say ASR rewards for This autumn staking actions.

Jupiter, a Solana-based decentralized crypto alternate aggregator, has shocked the group by elevating safety issues about pockets seed phrases. The DEX launched its ASR rewards for This autumn stakers, requiring customers to export their seed phrases into the Jupiter pockets to say rewards on cellular and desktop. The requirement has sparked widespread concern as group members push again towards the rule, citing critical issues of safety with submitting seed phrases.

Jupiter Change raises security pockets issues for Web3 customers

🚨New: Group backlash has emerged after @JupiterExchange launched its ASR rewards for This autumn stakers, requiring customers to import their seed phrase into the Jupiter pockets to say through cellular or desktop. Some customers mentioned forcing seed phrase exports for small rewards is unsafe,… pic.twitter.com/owxTFG2xOm

— SolanaFloor (@SolanaFloor) January 31, 2026

Jupiter defended the requirement, stating that the measure is important to make sure truthful distribution of rewards and stop manipulation. Nonetheless, discussions centered on the potential for exploits and the burden on customers and long-term holders, who’re prone to lose every little thing if malicious actors acquire entry to their accounts. In response to Solana Ground, the decentralized alternate responded to the criticism, saying it’s going to roll out an alternate methodology within the coming few weeks that may permit customers to say their ASR rewards from different wallets.

Jupiter has hosted an annual airdrop occasion, Jupuary, each January since 2024, as a part of its in-house efforts to draw new customers and retain current ones. In 2024, the decentralized alternate distributed 1 billion $JUP tokens, value over $1 billion, to over 1 million crypto wallets. In 2025, the alternate hosted its second airdrop occasion, distributing 700 million tokens to loyal customers and stakers.

This 12 months, the ecosystem deliberate an preliminary distribution of 200 million $JUP tokens, with 170 million allotted to fee-paying customers and 30 million to stakers. The DEX had additionally introduced it will put aside 200 million $JUP tokens as a bonus pool for holding and staking the airdrop all through 2026.

The transfer was supposed to incentivize extra group members to carry as many tokens as doable and to discourage promoting stress that usually follows an airdrop occasion. The alternate had additionally introduced it had put aside 300 million $JUP tokens for Jupnet incentives. The whole token distribution occasion for the January 2026 ASR rewards amounted to 700 million tokens. The alternate had additionally introduced that $JUP stakers will probably be rewarded based mostly on their time-weighted stake and emphasised that the eligibility window for fee-paying prospects resulted in January 2026.

Jupiter revises the token airdrop provide from 700M to 200M tokens

Nonetheless, in November 2025, Cryptopolitan reported that Jupiter revised its Jupuary airdrop downwards, citing dilution issues. The choice was reached by way of a vote by group members after what occurred in the course of the earlier Jupuary occasion in 2025.

The January 2025 occasion noticed the ecosystem distribute $JUP tokens to everybody, together with new group members who had no intentions of being a part of the group and its ecosystem in the long term. Because of this, many of those new contributors bought the token, inflicting $JUP’s worth to crash considerably.

The brand new revision reserved 200 million tokens out of the deliberate 700 million for the January 2026 Jupuary occasion. The publication additionally famous that the airdrop’s eligibility will change in accordance with the venture’s DAO. The brand new revision will allocate 25 million $JUP tokens to staking contributors, with the remaining 175 million reserved for customers performing fee-paying actions within the Jupiter ecosystem.

In response to information from CoinMarketCap, Jupiter’s native crypto asset $JUP ranks 74th among the many largest cryptocurrencies, with a market capitalization of $648 million and a 24-hour buying and selling quantity of $57.22 million. The crypto asset is buying and selling at $0.1994, down 90.24% since its all-time excessive of $2.04 achieved 2 years in the past.

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