Jito DAO Proposes Directing 100% of Fees into DAO Treasury via JIP-24

The Jito DAO has proposed JIP-24, a governance proposal that significantly restructures the distribution of fee revenue within the Jito Network. With broad support from token holders, the proposal allocates all of the Jito Block Engine fees and all future revenues from the newly launched Block Assembly Marketplace (BAM) to the DAO treasury. This move centralizes control over key protocol revenues and aligns them more closely with the interests of $JTO token holders.

Previously, the 6 percent fee on Block Engine rewards was split equally between Jito Labs and the Jito DAO. With JIP-24 enacted, the entire 6 percent will now accrue to the DAO. In addition to consolidating existing revenue, the proposal earmarks these funds for value-accrual programs led by the Cryptoeconomics SubDAO (CSD), which was established under JIP-17.

Why the Change Matters

JIP-24 aims to deepen value alignment between the Jito Network and its native token, $JTO. By redirecting all fees to the DAO treasury, the proposal cements the DAO's role as the central entity in both technical and economic governance. It also reflects an emerging industry-wide shift in which on-chain value accrues directly to token holders.

The launch of BAM represents a notable development in Solana's broader blockspace economy. BAM introduces a new layer to Jito's infrastructure, offering verifiability, privacy, and programmability in transaction sequencing. BAM also enables "plugins," which allow developers to introduce new logic into how blocks are built. These plugins are expected to generate additional fee flows, which JIP-24 ensures will go directly to the DAO.

How the New Fee Routing Works

The proposal outlines a clear set of implementation steps:

• Jito Labs and the Jito Foundation will execute a Revenue Routing Transaction (RRT) or equivalent configuration change to redirect their share of Block Engine fees to the DAO treasury.

• All BAM-related fees, including plugin revenue, will also be routed to the same address.

• Confirmation of these changes, including updated addresses, will be posted publicly.

The DAO treasury, governed by $JTO token holders, will serve as the sole recipient of these revenues. The CSD will then propose budgets for deploying these funds into value-accrual initiatives.

Benefits and Risks

Routing all fees to the DAO opens up new income streams, particularly from BAM plugins, which could add an estimated $15 million in annual revenue. These flows will support initiatives aimed at boosting token holder value. The CSD will lead these programs, ensuring that capital is used in ways that are both impactful and efficient.

However, the proposal also introduces complexity. Managing multiple revenue streams demands strong accounting practices. To address this, the DAO will launch updated dashboards to track BAM and Block Engine fee flows, along with annual reporting on how funds are used. The proposal also anticipates execution risks, such as potential delays in reconfiguring fee routes. Clear steps and public confirmations aim to reduce those risks.

Future Outlook

In the short term, token holders can expect fee redirection to begin immediately, with the DAO treasury starting to accumulate revenues that previously flowed to Jito Labs. Within the next one to two quarters, the CSD will begin deploying programs designed to activate this capital in ways that advance the growth of the Jito Network and optimize value accrual for $JTO. These may include mechanisms such as buybacks, yield subsidies, and fee switch vaults.

Established under JIP-17, the CSD is an autonomous subDAO responsible for tackling the technical and strategic challenges of Jito’s token economy. Its mandate includes coordinating expertise, developing a data-driven strategy, and experimenting with cryptoeconomic mechanisms using a dedicated sub-treasury. Funded with $7.5 million in $JitoSOL and 5 million $JTO, the CSD will spend the next year exploring and refining ways to align the DAO’s economic bandwidth with the JTO token.

Over the long term, JIP-24 sets the foundation for a sustainable and transparent revenue engine. As BAM adoption increases and its plugin ecosystem expands, the DAO is positioned to capture more economic value. This reinforces the DAO’s role at the heart of the Jito Network and strengthens the link between protocol growth and token holder benefit.

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