Jito Labs suggested a new government proposal on Tuesday, called JIP-24, with the aim of decentralizing the network further by directing all its block engine and block mounting market (BAM) fees directly to Jito Dao Treasury.
If approved, DAO would take control of protocol revenue streams and guide them to the network’s JTO token holders. This in turn would reduce Jito Labs’ own influence on the network with the same name, while a DAO subgroup is given a greater role in the development -which in turn Jito Labs hopes will eventually increase the Jito tokens value.
Currently, rewards from Jito’s block engine are shared evenly – 3% to Jito Labs and 3% to DAO. JIP-24 would eliminate this division and send the full 6% of the fees along with all future BAM-related revenue for DAO Treasury permanently.
“This proposal reflects the Jito ecosystem’s commitment to ensure that protocol fees accrue directly to token holders as optimally as possible and cement DAO as central to the technical and financial management of the Jito network,” the Jito Labs team wrote in their suggestions.
The Jito network acts as a key block structure layer within Solana’s ecosystem that offers MEV-focused tools such as its block engine and BAM to optimize transaction sequence regulations and fee distribution. These tools allow validators to earn additional rewards while adjusting incentives between network participants and token holders.
A core element of the proposal is BAM, Jitos recently launched marketplace for programmable block assembly at Solana. BAM introduces “plugins” that can change transaction sequence determination logic, which potentially unlocks new revenue streams. According to the proposal, fees from BAM, especially those linked to plugin activity, would also be directed to DAO, which contributes to what the team estimates will be $ 15 million in new annual revenue.
The proposal also earmarks these funds for initiatives developed by CryptoConomics Subdao (CSD), a subgroup of governance that is tasked with designing token holder-turning value accrual strategies.
If it was passed, JIP-24 would represent a significant shift in how Jito’s protocol revenue is controlled, which expands DAO’s financial role and gives token holders a greater proportion in the network’s long-term direction.
Read: Jito launches BAM to reshape Solana’s blockpace economy
