Jito Launches JIP-38 to Route 100% of DAO JTX Revenue Into $JTO Buybacks and Burns

Solana powerhouse Jito has introduced JIP-38, a governance proposal that would commit the Jito DAO's entire 80% share of fees generated by JTX, its new self-custodial trading platform, to automated open market buybacks and burns of the $JTO token for at least 1 year.

The proposal, announced by Jito and authored by Dr. Nick Almond, Head of Governance at the Jito Foundation, seeks to formally establish Jito as what it describes as a "token-centric network." Under that model, all major protocol revenue flows to the DAO and remains under tokenholder governance, with the only standing exception being the 20% of JTX fees reserved for JTX development.

If approved, the commitment would remain in place from JTX's launch until a scheduled governance reappraisal in Q4 2027.

How the Buyback Mechanism Would Work

JTX Trade, Jito Labs' long-awaited consumer-facing trading platform on Solana, launches today to waitlisted users, featuring spot markets and tokenized equities, with perpetual futures planned later this year. Under the current revenue structure, 80% of JTX platform fees flow to the Jito DAO, while 20% remains with JTX for continued development.

JIP-38 proposes sending the DAO's entire 80% share into a programmatic system called the Rev Splitter. The Rev Splitter would automatically purchase $JTO on the open market before permanently burning the acquired tokens.

Rather than allowing discretionary treasury spending, every dollar of the DAO's JTX revenue would automatically reduce $JTO's circulating supply during the commitment period. Because the system operates onchain, tokenholders would be able to verify fee collection, buybacks, and burns in real time.

Any attempt to redirect those funds before the end of the commitment would require a separate governance proposal.

Proposal Reinforces Tokenholder Governance

According to the proposal, Jito wants to resolve an industry debate over whether value should accrue to protocol tokens or to the equity of companies building around them.

The proposal also emphasizes that tokenholders retain authority over how those revenues are deployed. Governance can choose between value-accrual mechanisms, such as buybacks and burns, and growth initiatives, such as subsidies and incentives for future JIPs.

It goes ahead to outline responsibilities for the Dev Council, CSD, and Foundation, with the Dev Council managing the Rev Splitter, the CSD handling buyback commitments and analytics, and the Foundation coordinating JTX fee routing and governance updates. No existing treasury funds are required, as buybacks would be funded through JTX revenue while development would rely on existing budgets.

Notably, JIP-38 would also update Jito's governance documentation to formally recognize the network's token-centric policy.

Broader Expansion Across the Jito Ecosystem

The proposal also comes during an active period for the broader Jito ecosystem, particularly around the continued adoption of Jito’s Block Assembly Marketplace (BAM).

Launched in September 2025, BAM introduced a new high-performance architecture for building blocks on Solana. Adoption has continued to accelerate, with 369 of Solana’s 715 validators now running Jito’s BAM Client, representing 51.6% of validators. BAM validators currently account for 31.9% of total $SOL staked, representing approximately $10.65 billion in stake.

In 2026 so far, BAM has grown from roughly 12% to 32% of the network's stake, added nearly 150 validators, from 223 to 369, and surpassed 80 million $SOL staked across BAM validators.

Jito Labs has continued expanding BAM’s capabilities and infrastructure. In April, the team shipped the BAM plugin, giving prop AMMs a dedicated transaction path to update quotes at 50-millisecond intervals. The system introduced a level of predictable, TradFi-style execution precision that has not previously existed on a decentralized network. In June, Maker Priority Plugin went live on Archer Exchange. MPP prioritizes transactions during BAM slots and reduces toxic flow for market makers, helping enable tighter spreads for onchain markets.

Yesterday, July 13, a new BAM node went live in Hong Kong. The deployment expands BAM’s data center footprint and supports Jito’s broader goal of building a more decentralized and resilient network.

In addition to revenue from BAM, all major Jito revenue streams already belong to the DAO, including revenue from $JitoSOL and the Block Engine. If approved, JIP-38 would make JTX the newest revenue stream directed toward automated $JTO buybacks while leaving tokenholders responsible for deciding the long-term allocation of network revenues after the Q4 2027 review.

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