Jito Labs proposed a new governance proposal on Tuesday, called JIP-24, aimed at further decentralizing the network by transporting all its engine and block assembly costs (BAM) directly to the Jito Dao Treasury.
If it is approved, the DAO would suppose control of the protocol income sources, by directing them to the holders of JTO tokens of the network. This would in turn reduce the influence of Jito Labs on the network of the same name, while a DAO subgroup assumes a greater role in development – which in turn hopes that Jito Labs will ultimately increase the value of the Jito token.
Currently, Jito’s block rewards are divided uniformly – 3% at Jito Labs and 3% in the DAO. JIP-24 would eliminate this split, sending 6% of the costs, as well as all future income linked to the BAM, to the Dao treasury permanently.
“This proposal reflects the commitment of the Jito ecosystem to ensure that the protocol costs accumulate directly to the holders of tokens as optimally as possible and cement the DAO as the central of the technical and economic governance of the Jito network,” wrote the Jito Labs team in their proposal.
The Jito network operates as a key construction key layer in Solana’s ecosystem, offering MEV -oriented tools like its block and BAM engine to optimize transaction sequencing and costs. These tools allow validators to obtain additional rewards while aligning the incentives between network participants and chip holders.
A central element of the proposal is BAM, the recently launched market of Jito for the assembly of programmable blocks on Solana. BAM introduces “plugins” which can change the logic of sequencing transactions, potentially disturbing new income flows. According to the proposal, the costs of BAM, in particular those linked to the activity of the plugins, would also be sent to the DAO, contributing to the estimates of the team will be $ 15 million in new annual income.
The proposal also makes workforce These funds for initiatives developed by the Cryptoeconomics Subdao (CSD), a governance subgroup responsible for designing value accumulation strategies for chip holders.
If it is adopted, JIP-24 would represent a significant change in the way in which the revenues of the Jito protocol are governed, expanding the financial role of the DAO and giving the holders of tokens a greater participation in the long-term direction of the network.
Read: Jito launches Bam to reshape the Espace de Solana economy
