Jito DAO Votes to Take Full Control of Protocol Revenue Stream
JTO token holders voted unanimously on September 4, 2025, to approve governance proposal JID-24, which redirects all Jito Block Engine fees and future Block Assembly Marketplace (BAM) revenue directly to the Jito DAO treasury. According to Solana Floor, this change effectively doubles the DAO's allocation of protocol revenue from its previous 50% share.
Previously, the 6% fee structure from Jito's Block Engine was split equally between Jito Labs and the Jito DAO. Under the approved proposal, Jito Labs has yielded its entire 3% share to the community-controlled treasury. The DAO will also receive all future fees generated through BAM, Jito's newly launched transaction sequencing marketplace.
The Cryptoeconomics SubDAO, established under a previous governance proposal JID-17, will manage the increased revenue flow. This autonomous body was initially funded with $7.5 million in JitoSOL and 5 million JTO tokens to optimize value accrual strategies for token holders.
Revenue Boost Expected to Drive Token Value Strategies
The proposal positions the Jito DAO to receive substantially higher annual revenue compared to its previous allocation. CoinDesk reports that BAM plugin activities alone could generate an estimated $15 million in new annual revenue for the DAO treasury.
In August 2025, the Jito DAO generated $1.61 million in revenue under the previous fee split arrangement. With the approved changes directing 100% of Block Engine fees plus all BAM-related income to the treasury, this figure is expected to increase significantly in coming months.
The Cryptoeconomics SubDAO will deploy these funds through various value accrual mechanisms including token buybacks, yield subsidies, and fee switch vaults. Unlike many Solana DeFi protocols that employ programmatic buyback models, Jito's approach allows for more strategic capital allocation decisions through community governance.
Broader DeFi Trend Toward Community Revenue Control
JID-24 reflects a growing movement across decentralized finance where protocols transfer fee ownership to community-led entities. Invezz notes this transition aligns with efforts to deepen decentralization and empower token holders with direct economic benefits from protocol success.
Similar fee switch discussions have emerged across major DeFi protocols, with Uniswap recently proposing its own revenue sharing mechanism for UNI token holders. The trend represents a shift away from traditional corporate profit distribution models toward community-governed treasury management systems.
For Jito specifically, the change strengthens the connection between JTO token value and protocol performance. The revenue consolidation creates a direct economic alignment between token holders and the network's growth, particularly as Solana's MEV ecosystem continues expanding through BAM adoption.
Despite the unanimous approval and potential for increased value accrual, JTO has declined 8.7% over the seven days following the vote, suggesting markets may be waiting for concrete implementation of the revenue deployment strategies.
Further Reading
For those interested in decentralized governance tools and treasury management systems, our comprehensive DAO tooling guide provides detailed analysis of over 100 platforms and tools used in decentralized governance. This resource covers voting mechanisms, treasury management solutions, and proposal frameworks that DAOs like Jito use to manage community-controlled assets.
