JIP 20 – Resolution of Transitionary TipRouter Payments
Category: Procedural, Treasury
Abstract
This JIP addresses a temporary discrepancy identified during the rollout of priority fee distributions following JIP-16 implementation. Specifically, it resolves a short-term accounting issue affecting validator payout distributions during a single epoch, ensuring validator payments remain accurate and timely. Jito Labs proactively managed this discrepancy, and this JIP authorizes reimbursement from the DAO treasury to Jito Labs for promptly handling validator payments.
Motivation
During the transition to the updated TipRouter distribution model outlined in JIP-16, a calculation discrepancy led to an overstatement of claimable amounts under specific conditions involving Validator MEV Commission rates. This specifically impacted the validator rewards calculations for 35 validators during one epoch. These validators temporarily experienced delays in receiving their full payments.
Recognizing the importance of maintaining trust and timely validator payments, Jito Labs promptly stepped in to ensure affected validators received immediate payout settlements totaling 2828 SOL*. This proactive measure ensured minimal disruption to validator operations and maintained protocol stability.
This JIP formally acknowledges the proactive efforts by Jito Labs and authorizes the reimbursement of 2828 SOL from the DAO treasury to Jito Labs. It is important to note that the non-delivered funds, which Jito Labs covered in the interim, went to the DAO treasury and there is no net change to the DAO treasuries expected REV.
Specification
- Issue Summary:
- A merkle root calculation discrepancy resulted in the temporary overstatement of total claimable validator and protocol rewards during the rollout of priority fee distributions.
- The discrepancy was limited to 35 validators operating at a specific commission threshold for one epoch.
- Resolution Action:
- Jito Labs immediately resolved validator payment discrepancies by distributing 2828 SOL directly to the impacted validators. The details of the transaction distributions can be found HERE.
- Updates have been made to the claiming logic, ensuring correct distribution sequencing for subsequent epochs.
- Additional operator patches are planned to prevent future occurrences, enhancing the robustness of the TipRouter infrastructure.
- Reimbursement Authorization:
- This proposal authorizes the transfer of 2828 SOL from the DAO treasury to Jito Labs as reimbursement for the proactive settlement payments made to validators.
Benefits/Risks
- Benefits:
- Ensures validator balances are accurate, preserving validator trust and network reputation.
- Maintains seamless economic transition and stakeholder confidence following JIP-16.
- Risks:
- Minimal; funds involved are clearly defined and reimbursement is transparently executed.
Outcomes
Successful passage of this JIP will:
- Officially authorize the repayment of 2828 JitoSOL to Jito Labs.
Formally close the incident, demonstrating proactive DAO governance and operational responsiveness.
Cost Summary
- This proposal will result in a one-time reimbursement cost to the DAO treasury of 2828 JitoSOL.
*rounded up to the nearest SOL, the actual amount of 2827.8014357570005 will be executed in the proposal payload.