Jito Labs proposed a new government proposal on Tuesday, called JIP-24, aimed at decentralizing the network by traveling all its rates of the block assembly market (BAM) directly to Treasure Jito Dao.
If approved, the DAO would assume control over the protocol income flows, addressing them to the tokens JTO owners of the network. This in turn would reduce Jito Labs’s own influence on the network of the same name, while a Dao subgroup assumes a more important role in development, which in turn Jito Labs hopes that the value of Jito’s Token.
Currently, Jito block engine rewards are divided evenly, 3% to Jito Labs and 3% for the DAO. JIP-24 would eliminate this division, sending 6% complete of rates, along with all future income related to BAM, to the Treasury DAO permanently.
“This proposal reflects the commitment of the Jito ecosystem to ensure that protocol rates are directly accumulated to tokens holders in the most optimal way possible and consolidate the DAO as fundamental for the technical and economic governance of the Jito Network,” wrote the Jito Labs team in his proposal.
The Jito Network works as a key block construction layer within the Solana ecosystem, which offers tools focused on MEV such as its block engine and BAM to optimize transactions sequencing and tariff distribution. These tools allow validators to obtain additional rewards in aligning incentives between network participants and tokens.
A central element of the proposal is BAM, the recently launched market for Jito for the programmable block assembly in Solana. BAM presents “accessories” that can modify the logic of transactions sequencing, potentially unlocking new income flows. According to the proposal, BAM rates, particularly those linked to the activity of the accessories, would also be enruted to the DAO, which contributes to what the team estimates will be $ 15 million in new annual income.
The proposal also assigns the funds for initiatives developed by Cryptoeconomics Subdao (CSD), a subgroup of governance responsible for designing value accumulation strategies for the value of the tokens.
If approved, JIP-24 would represent a significant change in the way in which the income of the Jito protocol is governed, expanding the financial role of the DAO and giving tokens to the tokens a greater participation in the long-term direction of the network.
Read: Jito Lanza Bam to restructure the Blockspace economy of Solana
