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

Jito Labs has introduced a governance proposal known as JIP-24, which aims to consolidate all protocol-generated revenue under the control of the Jito DAO treasury. The proposal, if approved, will redirect 100% of the fees from the Block Engine and future earnings from the newly launched Block Assembly Marketplace (BAM) into the DAO, eliminating the current arrangement where Jito Labs and the DAO each receive half of the Block Engine's 6% fee [6]. This marks a significant shift in the economic model of the Jito protocol and underscores the growing trend of decentralizing value capture in the DeFi space.

Under JIP-24, all future BAM-generated income—including revenue from plugins—will also flow directly into the DAO treasury. This aligns with a broader industry movement toward transferring financial sovereignty from centralized entities to community-led structures [4]. The initiative is expected to enhance the financial power of the DAO and its token holders by ensuring that all value created within the protocol remains within the hands of the community.

The implementation of JIP-24 involves a series of technical steps, including the execution of Revenue Routing Transactions (RRTs) and the updating of on-chain addresses to redirect fees to the DAO treasury [1]. These changes will be publicly verifiable, maintaining a high level of transparency. Once the fees are redirected, the DAO will manage the funds through the Cryptoeconomics SubDAO (CSD), a governance body established under the earlier JIP-17 proposal. The CSD is tasked with designing and executing strategies to accrue value for $JTO token holders, including buybacks, staking incentives, and fee-switch mechanisms [5].

A key anticipated benefit of the proposal is the potential for substantial revenue growth, particularly from BAM plugins, which are projected to generate up to $15 million in annual income. Combined with the existing Block Engine fees, this could create a robust financial foundation for the DAO to fund initiatives that drive long-term protocol value [7]. The DAO plans to implement updated dashboards and publish annual reports to ensure transparency in how the funds are used [8].

Looking ahead, if approved, the redirection of fees under JIP-24 could begin immediately. Over the next one to two quarters, the CSD—funded with $7.5 million in JitoSOL and $5 million in JTO—is expected to launch initiatives aimed at deploying these funds to benefit token holders [9]. The CSD will play a central role in developing economic models that align the DAO’s interests with those of the community.

The proposal also acknowledges the operational challenges of managing multiple revenue streams, including accounting complexity and the potential for implementation delays. To mitigate these risks, the DAO plans to adopt robust financial reporting and monitoring tools [1]. Despite these challenges, the Jito community has shown strong support for the proposal, viewing it as a pivotal step toward full decentralization [6].

For JTO token holders, the approval of JIP-24 could significantly impact the token’s value. By consolidating all revenue within the DAO and empowering tokenholder-driven governance, the proposal enhances the economic incentives for holding JTO. As capital flows increase and strategic programs roll out, demand-side pressure on the token could rise, particularly in a market where protocol value capture increasingly drives token valuations [10].

Overall, JIP-24 represents a bold and strategic move to reinforce the Jito DAO’s financial independence and align it with the interests of its token holders. As BAM adoption and plugin development continue to grow, the DAO is positioned to build a transparent and sustainable revenue engine that could redefine value distribution in the Solana ecosystem [10].

Source:

[1] Bitget, [https://www.bitget.com/news/detail/12560604896493](https://www.bitget.com/news/detail/12560604896493)

[4] AInvest, [https://www.ainvest.com/news/jito-dao-capture-100-protocol-revenue-jip-24-governance-shift-2508/](https://www.ainvest.com/news/jito-dao-capture-100-protocol-revenue-jip-24-governance-shift-2508/)

[5] Invezz, [https://invezz.com/news/2025/08/05/jito-labs-proposes-full-revenue-control-for-dao-in-jip-24-governance-proposal/](https://invezz.com/news/2025/08/05/jito-labs-proposes-full-revenue-control-for-dao-in-jip-24-governance-proposal/)

[6] SolanaFloor, [https://solanafloor.com/news/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)

[7] Binance, [https://www.binance.com/square/post/27909852167793](https://www.binance.com/square/post/27909852167793)

[9] cointurk, [https://en.coin-turk.com/jito-labs-proposes-a-bold-step-to-enhance-daos-revenue-flow/](https://en.coin-turk.com/jito-labs-proposes-a-bold-step-to-enhance-daos-revenue-flow/)

[10] X, [https://x.com/jito_sol/status/1952770826597503230](https://x.com/jito_sol/status/1952770826597503230)