JIP-26: Extend the Budget of the Cryptoeconomics subDAO (CSD)

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JIP-26: Extend the Budget of the Cryptoeconomics subDAO (CSD)

Category: Treasury

Abstract

This proposal extends the operating budget of the Cryptoeconomics SubDAO (CSD) by 50,000 JitoSOL in order to empower the CSD to execute buybacks equivalent to 100% of Jito Network revenue (roughly $12.5m).

Motivation

Since activation under JIP-17 and empowerment by JIP-24, the CSD has executed more than $3.2 million in buybacks, accumulating 2.15 million JTO at an average price of $1.52, and launched the design and development of the Vault, TWAP, and JTO Auction mechanisms – three critical pillars of an autonomous DAO treasury system.

The CSD has demonstrated exceptional fiscal discipline – 98 percent of expenditures have gone directly to buybacks and engineering – but, per its own projections, its current runway will be exhausted within the next quarter due to the rate of buybacks. Without renewed funding, the DAO risks halting the momentum of:

  • Ongoing TWAP-based buybacks and market-data analysis.

  • Finalization of Vault and Auction contracts slated for Q1–Q2 2026.

  • Research and prototyping of protocol-owned liquidity mechanisms.

Extending the budget will allow the CSD to continue its research and development work while simultaneously maintaining an ongoing buyback to support value accrual.

Key Terms

CSD (Cryptoeconomics subDAO): An expert-driven unit of the Jito DAO tasked with designing, executing, and iterating cryptoeconomic mechanisms that translate DAO revenue into tokenized value accrual.

Vault: Smart-contract treasury router that programmatically allocates DAO revenue among value-accrual strategies.

TWAP Buybacks: Time-weighted average price repurchases of JTO tokens. The CSD has committed to executing buybacks equivalent to 100% of Jito Network revenue until an autonomous system for buybacks is deployed.

JTO Auction: On-chain auction mechanism that redistributes DAO revenue via competitive JTO bidding.

POL (Protocol-Owned Liquidity): A liquidity framework in which the DAO itself provides liquidity to stabilize JTO markets during adverse events.

Specification

Upon the passing of this JIP, the DAO will send 50,000 JitoSOL to the CSD multi-sig. These funds will be used under the mandates and requirements specified in JIP-17 and JIP-24.

The CSD remains governed by its existing 4/6 multisig of empowered experts established in JIP-17. It must publish quarterly progress reports covering buyback execution, treasury balances, and development milestones. All code and research outputs must be open-sourced under an MIT-style license.

The DAO may renew, revise, or revoke this authorization at any time through a subsequent JIP.

Benefits / Risks

Benefits

  • Preserves uninterrupted operation of JTO buyback and market-stabilization programs.

  • Enables completion of core CSD mechanisms—foundations of autonomous DAO treasury management.

  • Advances POL as a long-term liquidity solution reducing external incentive spend.

Risks

  • Continued reliance on expert governance introduces trust risk until full automation. Mitigated by The CSD remaining within it’s term limits and mandate set out within JIP-17.

Outcomes

  • Delivery of the Vault and JTO Auction v1 smart contracts.

  • Completion of monthly TWAP buybacks maintaining value linkage between network revenue and JTO price.

  • POL research paper with implementation recommendations.

  • Strengthened data infrastructure and analytics to inform future automated buyback algorithms.

Cost Summary

50,000 JitoSOL, for the purpose of JTO buybacks

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