Jito Foundation unveils governance token for Solana MEV development

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Jito Foundation unveils governance token for Solana MEV development

By Charles Thuo - min read
  • Jito Foundation Launches Governance Token (JTO).
  • Impactful Solana MEV Mitigation by Jito Labs.
  • The JTO token will have a total supply of 1 billion.

Jito Foundation, the driving force behind Solana MEV developer Jito,  has made a significant move with the launch of a governance token, JTO.

This move aims to not only manage the protocol but also foster development in the Solana ecosystem. With a total supply of 1 billion JTO tokens, this initiative seeks to democratize decision-making within the Jito Network, allowing community members to play a pivotal role.

Empowering Solana’s liquid staking with JTO tokens

In a bid to address challenges posed by Maximum Extractable Value (MEV) on Solana, Jito Labs, backed by the Jito Foundation, has taken a proactive approach by launching a governance token, called JTO, for the Jito Network.

The Jito MEV network, consisting of validators, has now garnered over 40% of the Solana network’s stake weight. This statistic underscores the practical impact of Jito Labs in mitigating MEV-related issues on the Solana blockchain. Jito’s software enables Solana to run more efficiently and earn MEV rewards.

With a carefully crafted tokenomics model, the Jito Foundation has allocated 34% of the JTO tokens for community growth, emphasizing the importance of grassroots involvement. Additionally, 10% of the tokens are earmarked for an airdrop, a gesture recognizing the vital contributions of community members in bootstrapping the network.

With JTO, users can set fees for the JitoSOL stake pool, update delegation strategies by controlling StakeNet parameters, manage the DAO treasury of JTO tokens and revenue from JitoSOL, and contribute to the enhancement of the Jito Network.

Solana Ventures and Anatoly Yakovenko, co-founder of Solana Labs, are among notable investors in Jito Labs, which successfully raised $10 million in a Series A funding round last year.

This governance token launch by the Jito Foundation aligns with the broader trend of decentralized decision-making within blockchain projects. By involving the community in protocol management and development decisions, the Jito Network aims to strengthen its position within the Solana ecosystem.