JIP 18: Mint all SOL to JitoSOL

JIP - Official
1

JIP-18: Mint all SOL to JitoSOL

Category: Treasury

Abstract

This proposal seeks to convert all unstaked SOL currently held in the Jito DAO treasury into JitoSOL. This will ensure the treasury optimizes its yield, enhances DAO revenue through staking rewards, and aligns treasury management practices with Jito’s core staking protocol.

Motivation

Currently, approximately one-third of the DAO’s SOL holdings remain unstaked, representing approximately ~$9M of SOL in treasury assets. These funds are not currently earning any yield, effectively resulting in an ongoing opportunity cost. Converting these SOL holdings into JitoSOL ensures continuous (and optimal) yield generation, increases DAO financial efficiency, and demonstrates clear alignment with Jito’s broader strategic objectives by reinforcing protocol alignment.

Although recently a large proportion of unstaked SOL has been useful for rent purposes (See, JIP-16) there are no foreseeable immediate liquidity needs or large SOL requirements, making the conversion economically prudent. Furthermore, should SOL liquidity needs arise in the future, JitoSOL holdings can be unstaked to reclaim SOL.

Specification

Upon approval of this proposal, the DAO will approve the mandate for all unstaked SOL in the DAO treasury wallet (approximately 62,340 SOL at current snapshot) to be converted to JitoSOL after accounting for de minimus operational liquidity requirements. This action will be executed promptly following the passage of this JIP to ensure minimal yield loss.

Benefits/Risks

Benefits:

  • Increased yield and revenue for the DAO treasury.
  • Enhanced alignment with Jito’s protocol goals.
  • Optimized treasury asset management.

Risks:

  • Reduced immediate liquidity flexibility (though minimal, given rapid unstaking capability).

Outcomes

Successful execution of this proposal will:

  • Convert the DAO’s idle SOL assets into yield-generating JitoSOL.
  • Maximize treasury returns, enhancing financial sustainability.
  • Demonstrate effective and prudent treasury management to the community.

Cost Summary

This proposal incurs no direct financial cost.

7 Likes
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JitoSOL is better SOL

3 Likes
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This is a straightforward and sensible step imo. Converting idle SOL to JitoSOL improves treasury efficiency, strengthens protocol alignment, and avoids unnecessary opportunity cost. I support this proposal.

3 Likes
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A quick update on JIP-18 execution. It was our hope to include this JIP in this voting cycle, however it became evident at execution that the execution path for minting SOL to jitoSOL was not included in the Realms UI during proposal creation.

In collaboration with the Realms team and Jito Labs resource, this has now been successfully pushed to our main https://gov.jito.network/ realms instance.

However, give the size of the Tx we are going to take some time to thoroughly test this on our DAO staging environment and wait for the next voting cycle. Which we anticipate this to be in about 2 weeks.

The only real downside to the wait is loosing out on some jitoSOL yield in the treasury and there are no down stream dependencies on JIP-18 execution.

Voters on JIP-17 feel free to synchronise with your keys and vote in time for the vote close.