Jito Labs proposes full revenue control for DAO in JIP-24 governance proposal

In a bold step toward deepening decentralisation and empowering token holders, Jito Labs has introduced a governance proposal, JIP-24, that seeks to reroute all protocol-generated fees directly to the Jito DAO treasury.

The initiative has generated significant buzz across the Solana ecosystem, as it signals a potential shift in how value is captured and redistributed within one of the network’s largest DeFi protocols.

If approved, the proposal will not only eliminate Jito Labs’ share of fees but will also grant the DAO full control over revenue management.

This could have long-term implications for the JTO token value and the financial sovereignty of the community.

Jito DAO to receive 100% of fee revenue

At the heart of the JIP-24 proposal is a restructuring of how protocol fees are distributed.

Currently, 6% of the rewards from Jito’s Block Engine, an infrastructure component responsible for extracting and routing MEV (maximal extractable value), is split evenly between Jito Labs and the DAO.

However, under JIP-24, this fee split will be scrapped entirely. Instead, the full 6% will flow directly into the Jito DAO treasury.

Moreover, all future revenue generated by the recently launched Block Assembly Marketplace (BAM) will also be directed to the same treasury address.

This transition is aimed at ensuring that all economic value created within the Jito ecosystem accrues to the DAO and, by extension, to JTO token holders.

It also reflects a growing trend across decentralised finance, where protocols are increasingly shifting fee ownership to community-led entities.

The launch of BAM transaction sequencing layer

Notably, the JIP-24 proposal arrives alongside the launch of BAM, a new transaction sequencing layer that brings verifiability, programmability, and privacy to Solana’s blockspace economy.

BAM introduces “plugins” that allow developers to embed custom logic into block building, opening up new monetisation channels for the network.

Revenue from these plugins is expected to be substantial. Officials estimate that, when combined with existing Block Engine fees, the DAO could generate up to $15 million annually in recurring revenue.

With the adoption of BAM still in its early stages, that figure could grow over time.

This potential windfall places the DAO in a stronger financial position and could enhance its ability to fund initiatives that drive long-term protocol value.

Jito DAO treasury to be steered by Cryptoeconomics SubDAO

JIP-24 also defines a strategic roadmap for deploying the incoming funds.

Revenue will be managed by the Cryptoeconomics SubDAO (CSD), an autonomous governance body established under a previous proposal, JIP-17.

The CSD is tasked with designing and executing token value-accrual strategies. These may include buybacks, staking incentives, fee-switch mechanisms, and grants aimed at ecosystem expansion.

Its mandate is both technical and economic, aiming to align capital deployment with the long-term interests of the network.

With a sub-treasury already funded with $7.5 million in JitoSOL and 5 million JTO tokens, the CSD is positioned to begin deploying programs within the next two quarters.

Transparency measures, including updated dashboards and annual reporting, will ensure that all fund usage is publicly accountable.

Potential risks

While the benefits of JIP-24 are clear, the proposal also acknowledges potential risks.

The reconfiguration of fee routing involves technical steps such as Revenue Routing Transactions (RRTs) and updates to on-chain addresses. Delays in these processes could slow implementation.

Additionally, managing multiple revenue streams introduces accounting complexity.

However, the DAO plans to address this through robust financial reporting and monitoring tools, aiming to maintain transparency and efficiency.

Despite these challenges, early sentiment within the Jito community appears strongly supportive.

With the DAO poised to become the sole recipient of all protocol revenues, many see JIP-24 as a defining moment in the network’s journey toward full decentralisation.

Implications for JTO token holders

For crypto traders and investors, the passage of JIP-24 could have meaningful implications for the value of JTO.

By centralising all revenue within the DAO and empowering tokenholder-driven governance, the proposal enhances the economic case for holding JTO.

As capital flows increase and strategic programs roll out, demand-side pressure on the token could rise.

This may be especially impactful in a market where protocol value capture increasingly drives token valuations.

Moreover, the structure proposed in JIP-24 creates a more transparent, data-driven framework for aligning revenue growth with tokenholder benefit.

This aligns with broader DeFi trends and positions the Jito DAO as a revolutionary, revenue-generating collective.

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