Jito Plans To Direct All Protocol Fees To DAO Treasury In Major Governance Shift
Jito Labs announced plans to redirect 100 percent of protocol fees to the Jito DAO treasury. According to The Defiant, the proposal would eliminate the current 50/50 revenue split between the DAO and development team.
The change covers all fees from the Block Assembly Marketplace and Jito Block Engine systems. Jito Labs revealed the proposal in a Tuesday blog post about their new transaction sequencing technology. The development team would continue providing technical support without taking revenue cuts.
Jito currently ranks as Solana's second-largest DeFi protocol with over $3 billion in total value locked. The protocol trails only Kamino's $4.5 billion TVL in the Solana ecosystem. This restructure could provide the DAO with up to $50 million in additional annual revenue.
Why This Financial Restructure Matters
The fee allocation change represents a shift toward complete community control over protocol economics. DAOs managing significant treasuries face complex decisions about asset allocation and risk management. Request Finance research shows over 25,000 DAOs collectively manage $21.5 billion in treasury assets.
Treasury diversification has become essential for DAO sustainability during market volatility. Most DAOs hold concentrated positions in their native tokens, creating vulnerability during price downturns. Jito's increased revenue flow enables better diversification strategies and operational funding security.
The JTO token dropped over 9 percent in 24 hours despite the governance-positive news. Market reactions often disconnect from long-term structural improvements in protocol economics. The additional treasury funding provides resources for development grants, strategic investments, and community initiatives.
Industry Implications For Solana Ecosystem
Solana's liquid staking sector has experienced rapid growth throughout 2025. DataWallet reports liquid staking now accounts for 10.4 percent of Solana's total staked SOL. JitoSOL commands approximately 39 percent of the liquid staking market share.
MEV rewards have become increasingly important for staking protocol competitiveness. Jito's Block Assembly Marketplace reached 1.37 million unique tippers in January 2025. The top 10,000 addresses collectively paid millions in tips for prioritized block space access.
Helius analysis shows Jito tips comprise 41.6 to 66 percent of Solana's Real Economic Value. This MEV infrastructure maturation benefits both validators and stakers through increased reward distribution. Traditional financial institutions are closely monitoring these decentralized treasury management innovations.
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. The guide covers voting mechanisms, treasury management solutions, and operational frameworks for autonomous organizations.
