Jito Foundation Governance Procedures

Foundation Governance Procedures

If and/or when, your JIP ideas begin to gain momentum, please learn below how to move them forward.

Jito Improvement Proposals (JIPs)

Jito Improvement Proposals ("JIPs") are the primary mechanism for introducing, discussing, and implementing changes to the DAO’s governance and operations, and the Jito Network. JIPs serve as a means of fostering community discourse and decision-making within the organization.

The JIP procedures consist of the following stages (the “Governance Procedures”):

Community Discussion

Ideas are discussed in a public governance forum (as designated by the Foundation from time to time which initially shall be the website located at the following link: https://forum.jito.network) by the community, with the author addressing feedback, questions, and suggestions. Upon an author’s request, a DAO moderator (“DAO Moderator”) will confirm that an idea generally conforms to proposal guidelines (including that it fits within one of the categories initially enumerated below, which categories may be subject to further changes in accordance with a JIP related to the governance process). Once confirmed, and subject to the then applicable proposal threshold, the author(s) may move on to the next stage.

The author should incorporate any feedback received from the community and may alter the template if absolutely necessary to communicate effectively. It is recommended that the DAO Moderator confirm that the draft conforms to the proposal guidelines (https://jito.network/docs/governance) before submitting the proposal and inform the Administrator. After the Administrator has confirmed proposals meet the above criteria, the proposal will be posted on Jito’s governance forum (https://forum.jito.network/) for community discussion.

Until a DAO Moderator is initially appointed by the Administrator and in the event that at any point in time there is no appointed DAO Moderator, the Administrator will perform these duties. If a Tokenholder does not meet the minimum token threshold for submitting proposals, they may work with someone who does to submit their proposal on their behalf. See https://jito.network/docs/governance for more details.

Proposal Discussion

Once proposals have been posted to the forum, they will initially stay open for community discussion for 30 days (the “Discussion Period”).

Proposal Submission

Proposals can be submitted to Realms (as defined below) after the Discussion Period is complete. Realms has a 250,000 JTO token minimum for proposals to be submitted from the community. Any Tokenholder who meets this proposal threshold may submit their proposal directly. If not, the Administrator can assist to have the proposal submitted on their behalf.

The Administrator will review the proposal for practicality and safety for the DAO once submitted and will ensure the proposal strictly adheres to applicable laws and regulations. The JIP release will take place on the DAO’s interface located at https://gov.jito.network.

Voting

Tokenholders will be allowed to vote on JIPs for three (3) days (the “Voting Period”), followed by a two (2) day delay period (the “Delay Period”).

Implementation

Approved proposals will be treated differently based on the nature of the change. For those including on-chain executable code, these can be executed by anyone via the Realms interface immediately following the conclusion of the Voting Period and Delay Period.

For proposals requiring implementation by the Foundation, the Administrator will work with the author, appropriate service providers of the Foundation, and other parties as needed to execute the proposal. The Administrator will provide updates on Jito’s governance forum (https://forum.jito.network/) no less than every two weeks on the status of any such implementation.

Proposal Requirements

By submitting your JIP to vote in accordance with the Governance Procedures, you agree to submit your grant to certain conditions, including any requirements under applicable laws and regulations and AML/KYC processes deemed necessary or advisable by the Foundation.

Proposal Guidelines

Proposals should not break any of the governing principles of the Foundation (as set out in the Bylaws) and all proposals must strictly adhere to applicable laws and regulations. Furthermore, any actions or initiatives proposed must be within the permissible bounds as set forth by the laws of the Cayman Islands, under which the Foundation operates. Non-compliance or contravention of these legal parameters may result in the immediate rejection or invalidation of the proposal.

Proposals that do not adhere to these guidelines may not be considered or vetoed by the Security Council. It is essential to review and ensure alignment with the Foundation’s governing principles and legal constraints before submission.

Voting Parameters

The initial voting parameters for Tokenholders is as follows, which may be subject to further changes in accordance with a JIP related to the governance process (the “Voting Parameters”):

Voting Period: 3 days (Length of the period during which people can cast “Yes” or “No” votes)

Delay Period: 2 days. The delay period takes place after the voting period has ended and before the proposal is executed. During the Delay Period, token holders can only vote against open proposals. “Yes” votes cast during the Voting Period can be switched to “No” votes during this period. Upon completion of the Delay Period, if the number of “No” votes is greater than the number of “Yes” votes, the proposal will not pass.

Proposal Threshold: 250,000 JTO (Minimum number of tokens a holder must have, or be delegated by third parties, to submit a proposal for a vote of the DAO)

Voting Threshold: At least 3% (30,000,000 JTO) of the 1,000,000,000 JTO total token supply must vote “yes” and the number of “yes” votes must be more than the number of “no” votes.

Implementation Period

On-Chain Actions

For programmatic changes, token holders can execute approved proposals instantly following completion of the Delay Period.

Off-Chain Actions

Due to the nature of off-chain actions, execution may not be immediate following the passing of a JIP. Certain off-chain actions may require Foundation Director approval, which may be vetoed in accordance with applicable law or for other reasons including inconsistencies with the Foundation’s purpose as set out in the Foundation’s A&R M&A. If Foundation Directors exercise veto authority, disclosure and explanation for the veto shall be posted on the relevant JIP within two weeks of the proposal’s passing.

Voting Power

One (1) JTO token equals one (1) vote over any proposals submitted to the DAO (the “Voting Power”). This will allow Tokenholders to participate in the governance process proportionally to their holdings.

The DAO, by Tokenholder Vote, may establish guidelines for evaluating and approving the inclusion of additional tokens in governance in the future.

Tokenholders have governance power over components of the Jito Network such as Realms Treasury management to allocate funds for community growth, protocol fee splits, stake pool fees, and other features including the ability to adjust the on-chain functions outlined at https://jito.network/docs/governance.

Amendments to Governance

The JIP procedures, Voting Parameters, Voting Power and all other governance mechanics can be amended or modified through JIP and a Tokenholder Vote. The above describes only the initial state of governance mechanics. The community is encouraged to decide the future state of governance, the DAO and the Jito Network. Amendments to the Foundation’s Bylaws can be made in accordance with the terms of the Bylaws and the Foundation Articles.

Proposal Conflicts

Should a proposal be in direct conflict with a proposal presently under consideration for voting, the latter proposal ought to be held back from voting until a resolution is reached on the initial proposal. This is to prevent the endorsement of contradictory stipulations.

In the event that a proposal is in direct opposition to an already approved proposal or identical to a previously unsuccessful proposal, it is not permitted to proceed to voting until three months post the implementation of the original proposal. This measure is in place to prevent the squandering of community resources.

On-chain Realms

JIPs that can be executed on-chain will be submitted and implemented via the DAO’s Realms interface located at https://gov.jito.network (the “Realms") JIPs that require allocations from the Realms Treasury may be executed via Realms.

Off-chain (Foundation Directors and Administrator)

JIPs that must be executed off-chain will also be submitted via the Realms interface. In the event that a JIP requires actions be taken by the Foundation to execute, the Foundation Directors or the Administrator, as appropriate, will take such actions as needed to execute the JIP, while adhering to the Foundation Documents (including the Bylaws and this Constitution).

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