A governance proposal, JIP-24, has been introduced by Jito Labs to further decentralize the network by channeling all Block Engine and Block Assembly Marketplace fees to the Jito DAO treasury. If approved, the DAO would take control of protocol revenue streams, directing them to the network's tokenholders, thus diminishing Jito Labs' influence over the network and increasing the role of a DAO subgroup in development. This move is expected to enhance the value of the JTO token.
Currently, rewards from Jito's Block Engine are split, with 3% going to Jito Labs and 3% to the DAO. JIP-24 proposes to eliminate this split, sending the full 6% of fees, along with future BAM-related revenue, to the DAO treasury. The Jito team believes this will optimize the accrual of protocol fees to token holders and solidify the DAO's central role in the network's governance. The Jito Network, operating as a key block-building layer within Solana's ecosystem, offers tools like the Block Engine and BAM to optimize transaction sequencing and fee distribution.
A significant aspect of the proposal is the inclusion of fees from BAM, a recently launched marketplace for programmable block assembly on Solana, which introduces 'plugins' to modify transaction sequencing logic, potentially unlocking new revenue streams. These fees, estimated to contribute $15 million in new annual revenue, would be routed to the DAO, supporting initiatives developed by the Cryptoeconomics SubDAO.
If passed, JIP-24 would mark a significant shift in the governance of Jito's protocol revenue, expanding the DAO's financial role and giving tokenholders a greater stake in the network's direction.