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

**URL:** <https://forum.jito.network/t/jip-26-extend-the-budget-of-the-cryptoeconomics-subdao-csd/902>\
**Category:** JIP - Official\
**Created:** [October 28, 2025, 9:55am UTC](https://forum.jito.network/t/jip-26-extend-the-budget-of-the-cryptoeconomics-subdao-csd/902 "2025-10-28T09:55:28Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![drnick](https://sea1.discourse-cdn.com/jito/user_avatar/forum.jito.network/drnick/32/187_2.png) [@drnick](https://forum.jito.network/u/drnick)\
**Post date:** [October 28, 2025, 9:55am UTC](https://forum.jito.network/t/jip-26-extend-the-budget-of-the-cryptoeconomics-subdao-csd/902/1 "2025-10-28T09:55:28Z")

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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