Jito Labs has introduced a new proposal JIP-24 aimed at redistributing revenues within the DAO. This move could change the current dynamics of management and funding within the Jito ecosystem.
The JIP-24 Proposal and Its Significance
Jito Labs, a leading infrastructure protocol on the Solana network, has presented a new proposal named JIP-24. This proposal aims to direct all Block Engine and Block Assembly Marketplace (BAM) fees directly into the DAO treasury. This action is seen as a supportive step towards advancing decentralization within the ecosystem.
If approved, the DAO will assume control over the protocol’s revenue flow and play a more active role in development, which could be a supportive measure for the JTO price. Currently, fees are shared between DAO and Jito Labs, but this proposal seeks to eliminate this split.
Price Analysis of JTO After the Proposal
Following the proposal, the price rapidly rose to $1.78, though it stands at $1.65 at the time of writing. Weakness in Solana’s price has negatively impacted token charts within the network, compounded by recent volatility in BTC prices. BTC’s decline to $113,000 forms the basis of this uncertainty.
The $1.56 mark has long been JTO’s support point, and breaching this could lead to a test of $1.41. Closes below $1.68 lay the groundwork for deeper corrections.
Impact on the Ecosystem and DAO's Future
If the proposal is accepted, it will channel an annual revenue of $15 million for the development of the DAO. These funds will also support initiatives developed by the Cryptoeconomics SubDAO (CSD), a governance subgroup tasked with devising strategies to enhance the token’s value.
The proposal reflects the Jito ecosystem’s commitment to ensuring protocol fees are optimally transferred directly to token holders, positioning the DAO as the nucleus of Jito Network’s technical and economic governance.
Jito Labs' JIP-24 proposal could significantly change the way revenues are redistributed in the DAO ecosystem, enhancing its sustainability and activity, but the current state of the cryptocurrency market may affect the realization of these intentions.
