Jupiter (JUP) DEX Halts DAO Voting Until 2026; Polygon (MATIC) Revamps with New CEO and Retires zkEVM

According to @dydxfoundation, Solana-based DEX Jupiter is pausing all DAO votes until the end of 2025, citing a "breakdown in trust" and structural inefficiencies. Jupiter executive Kash Dhanda confirmed that while active staking rewards of 50 million JUP per quarter will continue, no new DAO-funded work groups will be created. This decision follows a 21.8% decline in JUP's value over the past 30 days. In other major developments, Polygon co-founder Sandeep Nailwal has taken over as CEO of the Polygon Foundation, initiating a strategic overhaul focused on the AggLayer cross-chain protocol and retiring the zkEVM network. Additionally, the Ethereum Foundation has updated its treasury policy to cap annual operational expenses at 15% of its holdings, signaling a focus on critical deliverables for 2025-2026. The source also notes that Bitcoin Core's upcoming version 30 will significantly increase the OP_RETURN data limit, and Plume has launched its Genesis mainnet for real-world assets (RWA).
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DeFi Governance and L2 Strategies Shift as Market Seeks Direction
The decentralized finance (DeFi) landscape is undergoing a significant transformation as key players reassess their governance models and long-term strategies amidst a challenging market. Solana-based decentralized exchange (DEX) Jupiter has captured attention by announcing a pause on all DAO votes until 2026. Jupiter executive Kash Dhanda described the current DAO structure as dysfunctional, citing a "breakdown in trust" and a "perpetual FUD cycle." This move aims to refocus efforts during a "critical period" for defining DeFi's future. The decision follows a painful period for its native token, JUP, which has declined 21.8% over the last 30 days, trading around $0.40 at the time of the announcement. This price action reflects not only the internal governance struggles but also the broader market stagnation affecting altcoins. While active staking rewards will continue, the halt in new DAO-funded initiatives raises questions about the token's utility in 2025, a concern Dhanda acknowledged but deferred. This mirrors a similar move by Yuga Labs with its ApeCoin DAO, suggesting a broader trend of re-evaluating decentralized governance for greater efficiency and unified progress.
Solana (SOL) and Ethereum (ETH) Price Analysis
While Jupiter's governance news caused a stir, the impact on the broader Solana ecosystem's primary asset, SOL, was relatively contained within the market's general movements. The SOL/USDT pair showed resilience, trading at $153.70 with a 24-hour gain of 2.53%. It reached a high of $156.11 against a low of $149.50, indicating some buying pressure above the key $150 support level. However, its performance against Bitcoin was less impressive, with the SOL/BTC pair dipping slightly by 0.235% to 0.00140380, suggesting that capital was rotating more favorably towards the market leader or Ethereum. In contrast, Ethereum (ETH) displayed considerable strength. The ETH/USDT pair surged 6.7% to trade at $2619.46, with a high of $2633.47. Even more telling was its performance against Bitcoin; the ETH/BTC pair climbed a robust 4.55% to 0.02389000. This outperformance coincides with significant ecosystem developments and signals strong investor confidence in Ethereum's roadmap.
Ecosystem Giants Pivot: Polygon's Overhaul and Ethereum's Prudent Treasury Policy
Major Layer-1 and Layer-2 ecosystems are making bold strategic moves. Polygon co-founder Sandeep Nailwal has taken the helm as CEO of the Polygon Foundation, initiating a sweeping overhaul. According to a press release mentioned in a report by Margaux Nijkerk, the focus is shifting decisively towards AggLayer, a new protocol designed for cross-chain liquidity and interoperability. In a significant move, the foundation will retire its zkEVM rollup network, consolidating resources to reclaim its leadership position in Web3. This strategic pivot is a high-stakes maneuver designed to streamline Polygon's architecture and offer a more unified experience for developers and users, though the market's reaction will unfold over time. Meanwhile, the Ethereum Foundation has implemented a new treasury policy to ensure its long-term sustainability. As detailed in a blog post, the foundation will cap its annual operational expenses at 15% of its treasury, with plans to reduce this to a 5% baseline over the next five years. This disciplined financial management, emphasizing that 2025-26 will be pivotal years for Ethereum, likely contributed to the positive market sentiment surrounding ETH, reinforcing its status as a cornerstone asset in the digital economy.
Broader Protocol and Regulatory Developments
Beyond the major ecosystems, the pace of innovation continues unabated. According to a GitHub update highlighted by Sam Reynolds, Bitcoin Core developers are set to increase the OP_RETURN data limit in the version 30 release, a move that could expand Bitcoin's utility for data storage despite some community debate. In the real-world asset (RWA) sector, Plume Network launched its Genesis mainnet, aiming to tokenize traditional financial instruments on-chain. On the security and lending front, Safe, the popular multi-signature wallet, has launched Safe Labs to enhance its enterprise offerings, a development noted by Sam Kessler. Furthermore, lending protocol Morpho unveiled its V2, which, according to a report by Ian Allison, introduces fixed-rate, fixed-term loans to DeFi, a crucial feature for attracting institutional capital. These advancements signal a maturing industry building the infrastructure for the next wave of adoption. On the regulatory side, a report from Jesse Hamilton indicates that some within the U.S. Securities and Exchange Commission are exploring an "innovation exemption" for DeFi platforms. Concurrently, a report from Jamie Crawley notes that Ant Group is pursuing stablecoin licenses in Hong Kong and Singapore, signaling growing institutional interest in the Asian crypto market. These parallel developments in technology and regulation are critical for traders to monitor, as they will undoubtedly shape future market cycles and present new trading opportunities.
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