JIP-38: Confirm Jito as a Token-Centric Network
Category: Treasury
Proposal Type: Standard
Status: OFFICIAL
Abstract
This JIP confirms that the Jito Network is a token-centric network. This means that all DAO revenues, including every fee stream the network generates, with the sole exception of the 20% of JTX fees reinvested in JTX development, will flow to the DAO and therefore to the token. JTO is the value capture asset of the Jito Network, holding hard economic governance rights over how those revenues are deployed: toward value accrual or toward growth, by Tokenholder vote alone. As the concrete expression of this position, this JIP commits 100% of the DAO’s JTX revenue share to JTO buybacks and burns for at least one year to Q4 2027, executed programmatically by the Rev Splitter under Dev Council management, with a full re-appraisal of all fee streams at Q4 2027.
Motivation
A debate is running through crypto about where value should live: in tokens, or in the equity of the companies that build around them. Networks that never answer it drift toward the equity answer by default — revenue quietly accumulates where governance can’t reach it, and the token becomes a secondary, or even neglected asset.
Jito answers this question directly, all Jito Protocol revenues flow to the token.
The revenue base already belongs to the token. JitoSOL revenue, BAM revenue, Block Engine revenue — all of it flows to the DAO. With JTX, the network’s expansion into consumer trading, 80% of platform fees join that flow; only the remaining 20% is retained, and only for reinvestment in the platform that generates them. There is no parallel structure where network value pools beyond Tokenholder reach. What the network earns, the token governs.
Governance over revenue is real. Tokenholders direct these flows with hard rights exercised through JIPs: toward value accrual, as with the CSD’s buyback mandates (JIP-17, JIP-26), or toward growth, as with the BAM Early Adopter Subsidy that took protocol revenue to 100% subsidy and drove BAM past 31% of network stake (JIP-31, JIP-37). Both directions were Tokenholder decisions, bounded in time, executed transparently, and reversible. That is what economic governance means. Furthermore, under the new Constitution (JIP-35) and the veto architecture (JIP-36), every authority the DAO delegates, it can take back with a single vote ensuring that token holders have credible hard rights and supremacy over network decisions.
The new revenue line gets the strongest possible commitment. Rather than let JTX revenue arrive into ambiguity, this JIP binds it for one year: 100% of the DAO’s share to open-market JTO buybacks, all acquired JTO burned, executed programmatically, verifiable on-chain. The commitment gives the market assurance while the revenue line matures and provides an economic baseline for future value accrual activity.
Jito is a token-centric network. JTO is the economic foundation where all network value flows.
Key Terms
Token-Centric Network — a network in which all major project revenues flow to the DAO and are governed by the token, which holds hard economic rights over their deployment.
JTX Revenue Share — 80% of JTX platform fees, directed to the DAO; the remaining 20% is reinvested in JTX development.
Commitment Term — at least one year, from JTX launch through to the Q4 2027 Re-appraisal.
Rev Splitter — the programmatic fee collection and buyback system that sits alongside the growth oriented BAM Boost programme (JIP-31/37), which collects JTX platform fees and executes JTO buybacks. Actively managed by the Dev Council under revocable delegated authority, which is intended to be mainstreamed into core JTX architecture once stable.
Re-appraisal — the Q4 2027 Tokenholder decision over the routing of all network fee streams, informed by the CSD Analytics Report.
Specification
1. Confirmation of Token-Centricity
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The DAO confirms that all network revenues flow to the DAO and are governed by JTO, the first-class asset of the Jito Network. The sole standing exception is the 20% of JTX fees reinvested in JTX development.
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Deployment of these revenues — value accrual (buybacks, burns, and future distribution mechanisms) or growth (subsidies, incentives, expansion) — is decided exclusively by Tokenholder vote through the JIP process.
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Governance documentation is updated to state the token-centric position as network policy.
2. The JTX Commitment
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100% of the JTX Revenue Share is committed to JTO buybacks for the full Commitment Term, with all acquired JTO burned. Burns are verifiable on-chain.
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The commitment is non-divertible during the term; any redirection requires a standalone JIP.
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Burning is the current exercise of the DAO’s disposition rights.
3. Execution — the Rev Splitter
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A Rev Splitter mechanism: collects JTX platform fees and programmatically executes JTO buybacks.
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The Rev Splitter operates under active Dev Council management within its delegated authorities (JIP-35 Article IX), inside the JIP-36 revocable authority architecture.
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A work package is opened to progressively automate and decentralise Rev Splitter operations as revenue dynamics are monitored. Buyback and burns are the baseline, alternatives will be considered if they are provably more optimal.
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Per-epoch reporting: dashboards for fees collected, JTO acquired and burned, with on-chain references will be produced for the DAO.
4. Other Streams and the Re-appraisal
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Non-JTX streams complete their existing mandate (BAM subsidy through Q3 2026 per JIP-37) and return to the DAO at the hard cutoff; their Q4 2026 routing proceeds under existing governance.
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At Q4 2027, the CSD, or other capable structure, delivers extensive analytics across all fee streams — buyback performance, growth returns, comparative outcomes — and Tokenholders set the next regime by JIP: full buyback-and-burn across all streams, JTX buybacks with growth routing elsewhere, buyback-and-distribute activation, partial diversion, or any configuration Tokenholders choose. JTO holders decide.
Implementation Path
Contributor Execution (Dev Council): Implement the Rev Splitter; once JTX fees begin to accumulate execute programmatic buybacks through the term.
Contributor Execution (CSD): complete Q3 par buybacks (JIP-37); run automated buyback mechanism experiments; deliver the full-stack Analytics Report ahead of the Q4 2027 Re-appraisal.
Foundation Execution: coordinate JTX fee routing to the Rev Splitter; update governance documentation with the token-centric policy statement.
Benefits, Risks & Risk Analysis
Benefits
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A definitive public position. Jito is all in on its token JTO. Value accrues to it transparently from all major Jito Network revenue sources.
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Assurance plus adaptability. The market gets a one-year hard commitment on the new revenue line; Tokenholders keep full authority over everything else and a structured, evidence-based review over all of it.
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Governance as the differentiator. The JIP demonstrates the full toolkit — credible commitment (JTX), bounded growth investment (BAM subsidy precedent), delegated-but-revocable execution (Rev Splitter under JIP-36), and deliberate review (Q4 2027).
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No new build risk. Execution is near term and building on existing Jito infrastructure.
Risks
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JTX performance dependency. The headline commitment scales with platform revenue. The Jito Network is fully committed to making JTX the primary trading venue on the Solana Network.
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Dev Council operational dependency. Mitigated by: the JIP-36 veto trigger (12h timelock, single-vote revocation) and the staged automation roadmap.
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Governance use after the term. The Q4 2027 outcome is deliberately open and provides the network with the opportunity to fine tune its capital usage. A one year commitment should be sufficient to evaluate the effectiveness of buyback and burns as an optimal value accrual mechanism and the DAO’s effectiveness in economic governance.
Outcomes
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The Jito Network publicly affirms token-centricity: all revenues flow to the DAO and are governed by JTO as the network’s first-class asset.
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100% of the DAO’s JTX revenue is bought back and burned for at least one year until Q4 2027.
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Tokenholders retain and demonstrate hard economic governance over every stream, with a data-rich re-appraisal of the full fee stack at Q4 2027.
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The market receives a priceable commitment; the DAO retains a governable future.
Cost Summary & Funding Source
No existing treasury expenditure is required.
