Citing the necessity to give growth and product execution first priority, Jupiter executive Kash Dhanda said that DAO governance voting would be suspended until 2026.
The protocol would halt governance voting, according to Kash Dhanda, chief operating officer of the Jupiter decentralized exchange (DEX), which is based in Solana.
Jupiter "stands at the verge of an inflection point," according to Dhanda's lengthy declaration on Thursday, and "the window to define the future of DeFi is open, but it won't stay open for long."
Dhanda stated that Jupiter was suspending the decentralized autonomous organization (DAO) structure because it "isn't working as intended" and emphasized the importance of being "laser-focused on growth."
In 2026, DAO votes will resume "with a fresh methodology that unifies, rather than divides," according to Dhanda. He asserted that the DAO is "locked in a negative feedback loop," which is impeding its effectiveness and dividing the community.
While we reconsider how the DAO should function most effectively, suspending voting will "allow us all to concentrate on execution, speed, and growth."
DAO took a break to give execution top priority
According to Dhanda, all previously sponsored work groups will continue to function, and the suspension of DAO voting will not impact active staking payouts. However, until voting restarts, no new ideas will be considered, and the community reserve will not be altered. The development team will use its own operational treasury to finance community expansion.
After Jupiter's team engages the community to create a new procedure, DAO voting will restart the following year. The goal is to identify a more effective strategy.
Tracking the increasing reaction to DAO governance
The decision comes after Yuga Labs proposed earlier this month to shut down the ApeCoin DAO as part of their drive to restructure the ApeCoin ecosystem. With Greg Solano, the CEO of the company, arguing that the DAO has grown dysfunctional, this proposal sought to replace it with a new organization called ApeCo rather than a pause.
Similar to Dhanda, Solano bemoaned the DAO's slow progress and how it "devolved into sluggish, noisy, and often unserious governance theater." "Too many resources have gone to vanity proposals and low-impact initiatives," he concluded.