Jito DAO to Capture 100% of Protocol Revenue via JIP-24 Governance Shift

Jito Labs has submitted a governance proposal, JIP-24, which, if approved, will direct 100% of the Jito network’s protocol revenue to the DAO treasury, fundamentally reshaping how earnings are distributed [1]. This move shifts the allocation of fees—previously split between Jito Labs and the DAO—to the DAO alone, with the 6% fee previously shared now entirely benefiting the decentralized autonomous organization. The proposal has gained significant traction among $JTO tokenholders, reflecting a broader alignment of incentives between the protocol and its community-driven governance structure.

The updated financial model also introduces the Block Assembly Market (BAM), a new infrastructure layer that enhances verifiability, privacy, and programmability in transaction ordering [1]. BAM supports the development of “plugins,” which allow developers to embed custom logic into block construction. These plugins are anticipated to generate additional revenue, with all proceeds flowing directly to the DAO treasury. This creates a more flexible and developer-friendly environment while centralizing economic control within the DAO.

Fee redirection will be implemented through revenue routing transactions (RRTs) or equivalent configuration changes, ensuring both block engine and BAM fees are directed to the DAO’s designated address [1]. These changes will be publicly confirmed, with updated addresses shared with the community. Once operational, the DAO treasury—managed by $JTO tokenholders—will serve as the sole destination for all protocol revenue. The Crypto Economic SubDAO (CSD), established under JIP-17, will then propose a budget to allocate these funds into value-accumulation initiatives.

The proposal outlines short-term expectations, including the immediate redirection of fees from Jito Labs to the DAO treasury. Over the next one to two quarters, the CSD is expected to deploy strategies to activate these funds, potentially through mechanisms such as token buybacks, yield subsidies, and fee conversion vaults. The CSD, which holds $7.5 million in JitoSOL and $5 million in JTO, will explore and refine methods to align the DAO’s economic bandwidth with the $JTO token over the coming year [1].

Long-term, JIP-24 establishes the foundation for a sustainable and transparent revenue engine. As BAM adoption increases and the plugin ecosystem expands, the DAO is expected to capture greater economic value. This transition reinforces the DAO’s central role in the Jito network and strengthens the connection between protocol growth and tokenholder interests.

Source: [1] Jito DAO Proposes Directing 100% of Fees into DAO Treasury via JIP-24 (https://solanafloor.com/news/jito-dao-proposes-directing-100-of-fees-into-dao-treasury-via-jip-24)