JIP 27: Introduce Directed Staking to the Jito Stake Pool
Category: Protocol
Abstract
JIP-27 introduces a directed staking programme that enables large JitoSOL holders and select DeFi protocols to direct stake to eligible validators while the remaining stake is delegated permissionlessly across the recently expanded validator set. This additional Stake Pool mechanic strengthens alignment with key ecosystem contributors, enhances competitive yield and functions in a complementary fashion to the neutrality of the broader permissionless Jito Stake Pool.
Motivation
JitoSOL’s historical delegation has been autonomous using an algorithm based on quantifiable on-chain metrics. This system works as intended, but ignores the contributions of validators that are improving Solana in other ways.
Selecting validators for outsized delegations based on unquantifiable variables is a fraught process in many respects that resists automation. Fixed delegation standards also creates a tension with those validators advocating for direct stake or single validator LSTs as their delegation from JitoSOL is capped. This JIP attempts to create a pathway for rewarding specific validators in a neutral system relying on the quantifiable metric of stakeholder capital allocation.
Large Solana holders that want to support exceptional validators will no longer have to choose between directly staking with them or using JitoSOL and foregoing that support. DeFi apps can now promote JitoSOL and be rewarded for it. Directed staking encourages third parties to promote JitoSOL since they will be rewarded for delivered stake, if they operate validators meeting the eligibility criteria.
Directed staking as proposed in this JIP attempts to transform a currently zero-sum market into a positive-sum market that incentivizes contributions to Solana and grows JitoSOL TVL by attracting new stakeholders. Directed staking will be balanced against the existing permissionless delegations that support new validators and network decentralization.
Jito DAO should ensure that the Jito Stake Pool can accommodate the needs of network stakeholders that command significant network stake and remain maximally competitive in the market. To do this, JIP-27 creates an opt-in channel for large JitoSOL holders and DeFi teams to support and enhance the stake of validators that meet objective standards, whilst keeping the majority of stake permissionless and algorithmic.
Key Terms
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Directed Staking: A feature allowing eligible JitoSOL holders and DeFi programs to direct stake to specific validators that meet objective eligibility criteria.
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User-Directed Delegation: Directed Staking by large JitoSOL holders using on-chain tickets that record validator preferences.
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DeFi-Directed Delegation: Directed Staking derived from JitoSOL balances held by whitelisted DeFi programs and routed to those programs’ designated validators.
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Non-Directed Stake: The remaining pool balance delegated autonomously via StakeNet’s algorithm across the expanded validator set.
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Measurement Window: The period over which ticket balances/DeFi TVL are averaged for directed routing (aligned with Steward epochs).
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Steward: The on-chain program that computes targets and moves stake for the Jito Stake Pool.
Specification
Program Overview:
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Enable additional delegation features — namely, a User-Directed and DeFi-Directed Staking Delegation programme.
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Integrate Directed Staking targets into StakeNet alongside non-directed targets; apply strict per-validator and global caps.
Directed Stake Inclusion Mechanism
It is imperative that all the high quality validators and DeFi projects on the Solana network have the opportunity to be eligible for Directed Stake inclusion as part of JIP-27. The inclusion criteria listed below, will all be governed by the StakeNet Steward programme as soon as possible, however given the engineering complexity of integrating DeFi TVL as a metric and the various diverse integrations required, there will be an interstitial phase whereby some degree of iteration is required before these criteria can be encoded into the mechanism.
To avoid the proliferation of committee structures, the Jito Foundation seeks permission as part of JIP-27 to be empowered to broker this integration with the Steward on behalf of the DAO. This will include the ability to engage with DeFi projects and large holders and their respective custodian requirements and onboard high quality validators to the programme.
A maximum of 6 months time limit is proposed for these temporary powers to be in place, with any extension due to technical delays or other complexities requiring an additional JIP to the DAO. To ensure transparency and neutrality, a Jito Foundation representative (e.g. the Head of Governance), will post to this thread a mid-point (3 month) report on the progress of JIP-27 and the path towards a governance minimised implementation.
Validators must:
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Maintain 0% inflation commission.
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Run Jito client with max Jito MEV commission ≤10%.
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Have ≥30 epochs of operating history.
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Meet vote-credit performance within 3% of chain max.
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Run the BAM client as required by general standards.
User-Directed Staking
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Access: Initially available to large holders (e.g., ≥100k JitoSOL and low wallet churn) to minimize overhead and gaming. Future phases may be permissionless
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Mechanism: On-chain “ticket” accounts record validator preference weights (e.g., {Validator 1: 60%, Validator 2: 40%}).
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Measurement: Every window (as frequent as every epoch, but could be extended longer if rolled out to the wider stake pool), an off-chain aggregation computes holder balances via a look back window.
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Enforcement: Only validators meeting eligibility receive directed targets, with ineligible validators entering the non-directed stake programme.
DeFi-Directed Staking
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Access: Limit initially to the ~10–15 largest DeFi programs by JitoSOL TVL or those with JitoSOL balances over 50k SOL.
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Mechanism: evaluate JitoSOL balances held by whitelisted program accounts and map each program to its designated validator(s), and post the aggregate to StakeNet each window.
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Eligibility & Parity: DeFi-designated validators must meet eligibility, with governance required parity with any PF-sharing terms those protocols apply to their own LSTs.
Non-Directed Stake
- Permissionless Delegation: remains permissionless and algorithmic across the wider Jito Stake Pool delegate set of 400 validators.
Caps
- Directed Staking Cap: Directed Stake shall be applied 1:1 to eligible operators. Permissionless SOL delegation (i.e. delegations excluding User- and DeFi-Directed Staking) shall have a floor of 10mm SOL. To the extent Directed Stake would reduce permissionless delegation below 10mm, DeFi-Directed Staking shall be reduced pro rata to maintain the 10mm SOL permissionless delegation. Permissionless delegation can exceed 10m SOL if Directed Staking or other carve-outs do not limit the balance.
Steward Integration & Rebalancing
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State: Add a singleton aggregate in the Steward program, DirectedStakeMeta, storing lamports per validator index.
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Target Calculation: Start with baseline non-directed targets; overlay directed targets subject to caps; drop ineligible targets automatically.
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Churn: Distinct, governable churn caps for directed and non-directed movements; temporary elevated caps may be used during initial rollout to reach equilibrium, with a published schedule.
Measurement Windows & Reporting
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Fixed Measurement Window: Align measurement window to Steward’s 10-epoch cycle (or move to 15 epochs ≈ 30 days).
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Publish aggregates: % directed stake, per-validator stake, number of eligible validators, churn %, blacklist actions. This data will be available on the Stakenet dashboard.
Governance & Parameter Changes
- All thresholds, caps, windows, and fees are on-chain governable and can be modified by future JIPs.
Benefits/Risks
Benefits
Ecosystem Alignment: Directed channels let large holders and DeFi projects support high quality operators that meet objective standards that push Solana towards IBRL.
Yield Stability: Majority of stake remains algorithmic, but more stake towards the highest quality operators optimises for predictable yield.
Transparency & Legitimacy: Public criteria, conflict disclosures, pre-announced membership changes, and published rationales to ensure best practice decision making and public accountability.
DeFi Project Alignment: Incentivises DeFi projects to accrue JitoSOL TVL
Risks
Concentration via Directed Staking: The directed staking activity dominates the pool, pushing out the permissionless staking activity. This is mitigated by a clear cap that protects at least 10mm SOL for permissionless delegation.
Outcomes
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Immediate
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Deploy on-chain ticket program and Steward state extensions for User/DeFi aggregates.
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Publish initial parameters (caps, thresholds, windows, fees) and the list of eligible validators.
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Establish the VEC with disclosures and operating procedures.
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Short-Term
- Admit first cohort of User-Directed holders and DeFi programme and begin with monthly directed aggregates.
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Medium/Long-Term
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Stronger alignment of stake with the highest quality operators and app teams and facilitate BAM adoption.
- A resilient, governable framework where parameters adapt via JIPs, preserving neutrality for most stake while enabling opt-in direction under strict caps.
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Cost
This proposal incurs no direct cost to the DAO.