Solana News Today: Jito DAO to Capture 100% of Protocol Fees via JIP-24 Governance Shift

Jito Labs has initiated JIP-24, a governance proposal aiming to redirect all Block Engine and Block Assembly Market (BAM) fees entirely to the Jito DAO treasury, eliminating the prior 3% revenue share with Jito Labs [1]. If approved, this move would centralize protocol revenue under the DAO, with estimated annual inflows of $15 million from BAM-related activities and other fees, significantly enhancing tokenholder value and governance control [2].

The proposal outlines a series of technical adjustments, including configuration changes and transaction rerouting, to ensure that all fees are directed to the DAO’s treasury, which will be managed in coordination with the Credible SubDAO (CSD) [2]. These measures aim to align economic incentives with the broader $JTO token holder community and reinforce the DAO’s role as the primary governance and economic hub of the Jito network [3].

Community engagement has shown strong support for the decentralization shift, with discussions in governance forums emphasizing the importance of aligning protocol revenue with token holder interests [2]. The move mirrors broader trends in decentralized finance (DeFi), where governance models increasingly favor DAO-driven structures over centralized entities [3].

Immediate effects include the cessation of Jito Labs’ direct revenue from protocol fees and the DAO’s full authority over fund allocation. Over the next one to two quarters, the CSD will deploy these funds to further develop the Jito network, potentially through buybacks, yield subsidies, and fee conversion mechanisms [3]. Long-term, the proposal aims to create a sustainable and transparent revenue model as BAM adoption and plugin ecosystem growth strengthen the DAO’s economic foundation.

The financial landscape surrounding Jito has shown recent volatility. As of August 5, 2025, Jito (JTO) traded at $1.63 with a market cap of $590.27 million, though it experienced a 4.23% drop in the past 24 hours and a 7-day decline of 14.51%. The 24-hour trading volume reached $57.05 million, marking an 83.01% surge, likely driven by the JIP-24 announcement [4].

Experts suggest that JIP-24 could enhance tokenholder engagement and influence broader market dynamics in the Solana ecosystem, reflecting trends observed in other DAO-driven DeFi protocols [3]. Analysts at Coincu note that such governance shifts often lead to increased innovation and decentralization in blockchain systems [4].

Jito Labs’ decision to realign revenue control under the DAO underscores a strategic emphasis on long-term sustainability and community-driven governance. As the DAO prepares to manage a larger share of the network’s economic output, it may pave the way for more direct value capture by token holders, reinforcing the evolving role of DAOs in decentralized ecosystems.

Sources:

[1] Jito Labs Proposes Governance Change for Solana Ecosystem (https://www.binance.com/en/square/post/08-05-2025-jito-labs-proposes-governance-change-for-solana-ecosystem-27909848196033)

[2] Jito DAO to Capture 100% Protocol Revenue via JIP-24 (https://www.ainvest.com/news/jito-dao-capture-100-protocol-revenue-jip-24-governance-shift-2508-68/)

[3] 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)

[4] ₿itBlitz on X (https://x.com/BitBlitz/status/1952765556492227027)