Abstract
JIP-XX introduces a directed staking programme that enables large JitoSOL holders and select DeFi protocols to direct stake to eligible validators while the remaining stake is delegated permissionlessly across the recently expanded validator set (conditional on a passing JIP-25). This additional Stake Pool mechanic strengthens alignment with key ecosystem contributors, enhances competitive yield and functions in a complementary fashion to the neutrality of the broader permissionless Jito Stake Pool.
Motivation
JitoSOL’s historical delegation has been permissionless using quantifiable metrics. This system works but ignores the contributions of validators that are improving Solana in other ways. Selecting validators for outsized delegations based on unquantifiable variables is a fraught process in many respects. Fixed delegation standards also creates a tension with those validators advocating for direct stake or single validator LSTs as their delegation from JitoSOL is capped. This JIP attempts to create a pathway for rewarding specific validators in a neutral system relying on the quantifiable metric of stakeholder capital allocation.
Large Solana holders that want to support exceptional validators will no longer have to choose between directly staking with them or using JitoSOL and forgoing that support. DeFi apps can now promote JitoSOL and be rewarded for it. Directed staking encourages third parties to promote JitoSOL since they will be rewarded for delivered stake, if they operate validators meeting the eligibility criteria.
Directed staking as proposed in this JIP attempts to transform a currently zero-sum market into a positive-sum market that incentivizes contributions to Solana and grows JitoSOL TVL by attracting new stakeholders. Directed staking will be balanced against the existing permissionless delegations that support new validators and network decentralization.
Jito DAO should ensure that the Jito Stake Pool can accommodate the needs of network stakeholders that command significant network stake and remain maximally competitive in the market. To do this, JIP-XX creates an opt-in channel for large JitoSOL holders and DeFi teams to support and enhance the stake of validators that meet objective standards, whilst keeping the majority of stake permissionless and algorithmic.
Key Terms
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Directed Staking: A governed feature allowing eligible JitoSOL holders and whitelisted DeFi programs to direct stake to specific validators that meet objective eligibility criteria.
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User-Directed Delegation: Directed Staking by large JitoSOL holders using on-chain tickets that record validator preferences.
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DeFi-Directed Delegation: Directed Staking derived from JitoSOL balances held by whitelisted DeFi programs and routed to those programs’ designated validators.
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Non-Directed Stake: The remaining pool balance delegated permissionlessly via StakeNet’s algorithm across the expanded validator set.
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Ultimate-Operator Cap: A maximum stake cap that any single operator may receive (directed + non-directed combined).
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Operator: The unique economic identity running one or more validators.
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Measurement Window: The period over which ticket balances/DeFi TVL are averaged for directed routing (aligned with Steward epochs).
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Steward: The on-chain program that computes targets and moves stake for the Jito Stake Pool.
Specification
Program Overview
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Enable a User-Directed and DeFi-Directed Staking Delegation programme.
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Integrate Directed Staking targets into StakeNet alongside non-directed targets; apply strict per-validator and global caps.
Validator Eligibility
Set up a lightweight governance structure that implements any actions that cannot be immediately mechanised, the Validator Eligibility Committee (VEC). A 3 person 2-of-3 multi-sig, with the mandate to appraise validator action against the following objective standards (most of which can be appraised mechanistically). The committee will primarily validate which validators fall under identified operators, ensuring the tracking of the ultimate-operator cap.
Validators must:
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Maintain 0% inflation commission.
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Run Jito client with max Jito MEV commission ≤10%.
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Have ≥30 epochs of operating history.
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Meet vote-credit performance within 3% of chain max.
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Pass operator alignment checks.
User-Directed Staking
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Access: Initially available to large holders (e.g., ≥100k JitoSOL and low wallet churn) to minimize overhead and gaming. Future phases may be permissionless
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Mechanism: On-chain “ticket” accounts record validator preference weights (e.g., {Validator 1: 60%, Validator 2: 40%}).
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Measurement: Every window (e.g., 10–15 epochs), an off-chain aggregation computes holder balances via a look back window.
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Enforcement: Only validators meeting eligibility receive directed targets, with ineligible validators entering the non-directed stake programme.
DeFi-Directed Staking
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Access: Limit initially to the ~10–15 largest DeFi programs by JitoSOL TVL.
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Mechanism: evaluate JitoSOL balances held by whitelisted program accounts and map each program to its designated validator(s), and post the aggregate to StakeNet each window.
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Eligibility & Parity: DeFi-designated validators must meet eligibility, with governance required parity with any PF-sharing terms those protocols apply to their own LSTs.
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Abuse Controls: Programs with rapid TVL churn or misreporting can be suspended.
Non-Directed Stake
- Permissionless Delegation: remains permissionless and algorithmic across the wider Jito Stake Pool delegate set of 400 validators (conditional on the passing of JIP-25).
Caps & Anti-Concentration
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Ultimate-Operator Cap: Aggregate stake across validators controlled by one operator capped at 500k stake.
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Overflow to Non-Directed Stake: Caps apply before movement and any overflow reverts to non-directed routing.
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Directed Staking Cap: Total stake applied under the combined DeFi and User-Directed Staking programs may not exceed [30%] of total JitoSOL stake.
Operator Policy
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Single Operator Rule: “One operator, one allocation” principle for non-directed stake with Directed Staking counts against operator-level cap.
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Public Heuristics: data such as authority clustering, payout accounts, infra/provider overlap, social disclosures) to detect operators misrepresenting the number of their associated validators. Non-cooperation may trigger ineligibility across all validators under an operator.
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Blacklisting: Pair with JIP-22 and JIP-23 to blacklist for sandwiching, consistent lagging and censorship activity, with public evidence where feasible.
Steward Integration & Rebalancing
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State: Add two singleton aggregates in the Steward programme e.g. UserDirectedStake and DeFiDirectedStake storing lamports per validator index.
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Target Calculation: Start with baseline non-directed targets; overlay directed targets subject to caps; drop ineligible targets automatically.
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Churn: Distinct, governable churn caps for directed and non-directed movements; temporary elevated caps may be used during initial rollout to reach equilibrium, with a published schedule.
Measurement Windows & Reporting
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Fixed Measurement Window: Align measurement window to Steward’s 10-epoch cycle (or move to 15 epochs ≈ 30 days).
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Publish monthly aggregates: % directed stake, per-validator stake, number of eligible validators, churn %, blacklist actions.
Governance & Parameter Changes
- All thresholds, caps, windows, and fees are on-chain governable and can be modified by future JIPs.
Key Considerations
Conflicts of Interest
Members of the VEC must disclose economic/social interests (validators, service providers) and recuse themselves from related cases. Disclosures are published and updated promptly. Breaches enable removal via governance.
Transparency
Publish eligibility thresholds, caps, the list of eligible validators, and monthly aggregate routing changes before stake moves. Validator-specific enforcement evidence is published where doing so does not compromise detection methods or security.
Appeals
Validators/programs may appeal eligibility/blacklist decisions once every 6 months. Denials include a short public rationale. Successful appeals restore eligibility in the next window, subject to churn limits.
Committee Terms (VEC)
Appoint a 3-member council for 12 months with a 2-of-3 quorum. Compensation: 1,500 JTO per member per month, funded upfront to a multisig with monthly distribution; unspent funds return to the DAO at term end.
Benefits / Risks
| Benefits | Risks / Mitigations |
|---|---|
| Ecosystem Alignment: Directed channels let large holders and DeFi projects support high quality operators that meet objective standards that push Solana towards IBRL. | Concentration via Directed Staking: A few of the top projects may attract outsized flows. Mitigated by enforcing operator-level caps. |
| Yield Stability: Majority of stake remains algorithmic, but more stake towards the highest quality operators optimises for predictable yield. | Snapshot/Window Gaming: It may be possible to deposit before snapshot and then sell stake after. Mitigated by applying an exit/turnover fee or minimum holding period within windows and using moving-average balances seeded by VRF. |
| Transparency & Legitimacy: Public criteria, conflict disclosures, pre-announced membership changes, and published rationales to ensure best practice decision making and public accountability. | Operational Overhead: Aggregation, enforcement, and appeals add work. Mitigated by starting with limited cohorts (large holder size, top 10–15 DeFi programs) and moving towards public tracking and automated reporting. |
| DeFi Project Alignment: Incentivises DeFi projects to accrue JitoSOL TVL |
Outcomes
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Immediate
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Deploy on-chain ticket program and Steward state extensions for User/DeFi aggregates.
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Publish initial parameters (caps, thresholds, windows, fees) and the list of eligible validators.
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Establish the VEC with disclosures and operating procedures.
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Short-Term
- Admit first cohort of User-Directed holders and DeFi programme and begin with monthly directed aggregates.
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Medium/Long-Term
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Stronger alignment of stake with the highest quality operators and app teams and facilitate BAM adoption.
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A resilient, governable framework where parameters adapt via JIPs, preserving neutrality for most stake while enabling opt-in direction under strict caps.
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