Solana Staking Protocol Jito Plans to Allocate 100% of Protocol Fees to DAO

Jito Labs, the development team behind the Jito liquid staking protocol on Solana, is proposing to redirect 100% of protocol fees to the Jito DAO.

The change, revealed in a Tuesday blog post, would end the current 50/50 split between the DAO and core team, potentially yielding the DAO as much as $50 million in additional annual revenue.

According to the announcement, all fees collected by Jito from the Block Assembly Marketplace (BAM) — a new transaction sequencing system currently being alpha tested with a small group of validators — and the Jito Block Engine would be redirected to the DAO treasury if the proposal passes. Jito Labs would continue to provide technical support but would no longer take a cut of the revenue.

“The DAO benefits immediately from existing fee flows, and as Plugin adoption grows, Jito Network is positioned to earn additional revenue from rising Solana activity, improved validator economics, and deeper alignment between ecosystem growth and DAO-owned infrastructure,” Jito Labs said.

Jito is the second-largest decentralized finance (DeFi) protocol on Solana with more than $3 billion in total value locked (TVL). It trails only Kamino, a yield and lending platform that automates capital deployment across Solana, which currently holds over $4.5 billion in TVL, per data from DefiLlama.

Fundamental Shift

In the blog post, Jito Labs explained that with BAM, it is proposing “a fundamental shift to how Solana transactions can be sequenced and how blocks can be built.”

The team says BAM could allow developers to build finance apps that require more control over transaction ordering and keep them private. This includes use cases such as dark pools — private trading venues where large orders can be executed without revealing details publicly immediately — and order books, which organize buy and sell orders for assets.

While the firm has not outlined in detail how the DAO would allocate its new share of revenue, a spokesperson for the Jito Foundation pointed The Defiant to JIP-17, a proposal which formed a Cryptoeconomics subDAO tasked with exploring mechanisms for managing DAO revenue, including, but not limited to, token buybacks.

Despite the news, Jito’s native token JTO has declined by over 9% in the past 24 hours amid a broad market selloff, according to CoinGecko.