Category: Protocol
Abstract
JIP-25 proposes a set of immediate actionable changes to StakeNet that are designed to mitigate emergent negative Stake Pool dynamics. Over time StakeNet has created a cryptoeconomic context that has converged towards biasing validators that utilise PvP tactics and engage in sybil activity. This is highly undesirable and following extensive validator feedback it is time for Jito DAO to act.
This proposal seeks to expand the validator set to 400, modify StakeNet eligibility and scoring systems and pause implementation of the priority fee requirement. It moves away from vote credits as a ranking mechanism towards a new ranking system that ranks based on commission, MEV commission, reverse validator age, and reverse vote credits to order validators in the pool. The goal is to move the Jito Stake Pool into a more productive economic equilibrium that biases high quality operators and lays the groundwork for a future JIP that introduces directed staking (link) and DeFi app directed staking.
Motivation
The current StakeNet system parameters were effective for most of its lifetime to date, creating a system for ordering validators by performance. However, validator vote credit performance for Solana has improved drastically since introduction of this mechanism and differentials are immaterial. The emphasis on vote credits as a mechanistic differentiator within the pool has led to a significant bias towards validators who hyperoptimize for this parameter. JitoSOL should reward validators pushing Solana towards its IBRL goals, not targeting inconsequential vote credit advantages.
Furthermore, permissionless validator delegation should not exceed standalone profitability by a wide margin. Otherwise sybil behavior is encouraged and anecdotal evidence suggests sybils are actively targeting JitoSOL delegations. JIP-25 would bring JitoSOL delegation below standalone breakeven given Solana’s current market environment. A broader validator set rewards more good Solana validators while discouraging sybil validators that do not contribute to Solana’s health.
JIP-25 proposes to modify StakeNet’s eligibility settings and scoring system to emphasise commission, MEV commission and validator age alongside a broadening of the stake pool validator set. A simple, transparent ranking of MEV commission (from lowest to highest), with validator age (from highest to lowest) as a tie breaking mechanism, will create a context that boosts JitoSOL yield, is harder to game and aligns incentives towards honest validators.
Finally, JIP-25 includes a further response to validator feedback and pauses the deployment of the priority fee sharing mechanism proposed in JIP-16. Engineering work has been completed for this action, but consensus has since drifted as the build was in progress due to changes in the broader Solana economy. At the time of the JIP-16 vote, priority fees were far higher than the current context (Q4 2024 and Q1 2025 priority fees were ~$350mm each whereas Q2 and projected Q3 priority fees are ~$96mm each Source: Blockworks). This decline of 72% in priority fees has a detrimental impact on validator earnings while reducing the benefit to JitoSOL holders of any sharing. The infrastructure is now ready and the DAO can propose implementation at a later date when the community decides its appropriate.
This proposal should be seen as part of a broader, phased evolution of Jito’s stake delegation governance. JIP-25 introduces incremental but important adjustments designed to reinforce Jito’s role as core Solana infrastructure. By aligning delegation incentives with positive-sum economic behavior and discouraging extractive practices, these changes strengthen validator quality, improve network health, and set the foundation for future upgrades.
Key Terms
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StakeNet Eligibility: The established StakeNet eligibility criteria remain.
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Delegation Set: The set of eligible validators that receive stake (up to 400).
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Rank: Ordering used by StakeNet when sequencing deposits/unstakes.
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Operator: Unique economic identity controlling one or more validators; used to enforce anti-sybil rules.
Specification
1) Delegation Set Size
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Increase the delegate set from 200 active validators, to 400.
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If more than 400 validators are eligible, the top 400 by Rank (defined below) compose the Delegation Set.
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All other StakeNet parameters (targets/churn) remain unchanged unless explicitly noted.
2) Modify Ranking Function
Replace the existing vote credit rank/score with:
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Primary Ranking Score: Commission Rate (ascending; lower is better)
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Secondary Ranking Score: Jito MEV commission (ascending; lower is better).
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Third Ranking Score: Validator age (descending; older is better), computed as the number of epochs since the validator first became active.
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Tiebreaker: Vote Credits act as final tiebreaker, to respond to the case where validator age extends beyond the lifetime of StakeNet (descending; higher is better)
Illustrative Example
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Validator Ranked 1st: 0% inflation | 3% Jito MEV | 36 mo history
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Validator Ranked 2nd:0% inflation | 3% Jito MEV | 5 mo history
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Validator Ranked 3rd: 1% inflation | 0% Jito MEV | 38 mo history
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Validator Ranked 4th: 2% inflation | 2% Jito MEV | 40 mo history | Vote Credits ++
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Validator Ranked 5th: 2% inflation | 2% Jito MEV | 40 mo history | Vote Credits
Interpretation: All five validators are eligible; ordering follows commission first, then MEV commission, then age, with vote credits as a final tie breaker.
3) Adjust MEV Commission Reference Period
Lengthen the MEV commission reference period from 10 epochs to 30 epochs. It specifically measures the highest MEV commission during that window. This is consistent with other reference periods and reduces possible manipulation associated with validators temporarily adjusting MEV commissions to earn stake more quickly due to the revised ordering criteria.
4) Pause Priority Fee Sharing
This delays the implementation of priority fee sharing as passed in JIP-16. No changes to existing parameters.
5) Retire Vote Credits as Ranking and Raise Threshold
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The continuous vote credit ranking system is relegated to act as the final tiebreaker.
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A higher threshold for vote credit inclusion is introduced of 97%
Benefits / Risks
Benefits | Risks / Mitigations |
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Reduces PvP incentives: Binary gates remove micro-score arms races over vote credits | Novel Stake Pool dynamics: The new structure will introduce a new cryptoeconomic structure for the pool and monitoring will be required to ensure that the new set point is optimal |
Broader set of 400: dilutes incentives to sybil and broadens accessibility to the Stake Pool | Short-term churn/yield drag: The proposal will take time to implement as churn caps create limits on implementation times. |
Simple, intuitive ordering: low fees first; older first | Older Validator Advantage: The new scoring system introduces validator age for the first time. This disadvantages newer validators. Mitigated by using validator age as a tie breaker rather than primary ranking key. |
Immediate implementation: No complex dynamics and new abuse surfaces. |
Outcomes
Short Term
- At execution changes to StakeNet are immediate with new ranking criteria implemented.
Medium Term
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The validator set expands and stake is progressively rebalanced as churn occurs.
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Directed stake JIP is deliberated and planned.
Long Term
- A comprehensive new Stake Pool governance structure including an expanded validator set alongside a directed stake system that improves Solana ecosystem health and network performance.