# JTO Utility And Tokenomics **URL:** \ **Category:** JIP - Ideas\ **Created:** [March 6, 2025, 4:25pm UTC](https://forum.jito.network/t/jto-utility-and-tokenomics/646 "2025-03-06T16:25:42Z")\ **Posts on this page:** 1\ **Showing post:** 27
**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:** [May 2, 2025, 12:47pm UTC](https://forum.jito.network/t/jto-utility-and-tokenomics/646/27 "2025-05-02T12:47:35Z")
# Jito DAO: Roundtable One Below is an overview of the first Jito Roundtable held at 10am ET Tuesday 29th 2025. If you didn’t catch it you can check it out on the X feed [HERE](https://x.com/jito_sol/status/1917217449306399055). Continuing the theme of this thread, it was an incredibly high signal chat, with @cosmojiang @BlockworksResearch @David_Grid @Ian and Nate (Token Engineering Commons). The full transcript can be found [HERE](https://docs.fileverse.io/0x097DBb842FFfE64c7D7cD3dfbC0aB511AAD04285/0#key=SAGoQb3DcJ4WJIlDGOpZFGRSjaPlGxq0s2F8yNRNcnP_SFvwF-WXSwgaGAjXPahZ). We will continue, with two further roundtables. DM me or @andrewt if you would like to participate. ### 1. Why the roundtable was held - Jito DAO captures material REV – since its launch the Jito DAO has become one of the highest fee-earning DAOs in DeFi. - No agreed capital-allocation policy – the DAO still lacks a strategy on whether the cash flows should be returned to token-holders or re-invested to widen Jito’s moat. - Goal of the Rountables – surface the leading forum ideas, debate them live, and start converging on a proposal that can be coded, tooled-up and put to a DAO vote in the next few weeks. * * * ### 2. Proposals & arguments at a glance | Theme | Proponent(s) | Core Mechanics | Claimed Upside | Main Concerns / Counter-points | | --- | --- | --- | --- | --- | | Epoch-end SOL-for-JTO auctions (buy-back via English auction) | Ian (Kairos) | Every epoch 2 % of SOL tips are auctioned; bids must be in JTO → drives continuous market buy-pressure. | “Moment-in-time value capture”; reflexive flywheel (higher JTO → cheaper incentive spend). | Added complexity, depends on healthy JTO float & off-chain liquidity; might leak value to arbitrageurs. | | Dynamic (valuation-aware) buybacks / dividends | David (Finality), Cosmo (Pantera) | Sliding scale keyed to revenue or m-cap multiples: cheap → buy back; fair → hold; rich → fee switch. | Mimics public-equity capital-allocation best-practice; avoids buying an over-priced token; simple to explain. | Needs robust oracles; still leaves the growth budget question open. | | Barter / DAO-to-DAO “strategic buyback” | Orig. Nick/Andrew; discussed by Blockworks | Buy back JTO and immediately lodge it with a partner DAO in exchange for preferential treatment (e.g. liquidity routing). | Hard-wires long-term alignment between protocols. | “Just do the deal” – the buyback layer is unnecessary overhead. | | Growth is a priority | Darren (Blockworks), Nate (TEC), Dan (Blockworks Data) | Funnel a majority of cash flow into new products: | | | - Jito-backed yield-bearing stablecoin - Wrapped BTC on Solana - Decentralised RPC network - Possible MEV-client M&A|LST market still early; MEV margins may compress; winning new verticals widens moat more than redistributions do.|Must prove high ROI; DAOs historically poor at grant-style capital deployment; danger of analysis-paralysis.| |Keep mechanism simple, governance disciplined|Cosmo, several others|Start with a light-weight, auditable rule set; revisit every few months.|Execution risk drops; reinforces a “capital-efficiency culture”.|May leave marginal efficiency on the table compared with bespoke mechanisms.| * * * ### 3. Areas of emerging consensus 1. Growth and distribution are not mutually exclusive – treat them as separate levers; fund high-ROI growth proposals case-by-case, but establish an always-on and dynamic return-of-capital framework. 2. Simplicity \> complexity – simple mechanisms, complexity (and people managed structures) add failure and centralisation risk. 3. Tooling gap – the DAO can already pass proposals for growth, but it lacks on-chain primitives for auctions, dynamic buybacks or fee streaming. Building those contracts/oracles is the actionable next step. 4. Milestone-based funding for any growth spend (including potential DAO-to-DAO deals or M&A) is preferred over open-ended grant programs. * * * ### 4. Key open questions to solve before a formal JIP - To what degree do we need to land strategy now: revenue multiple? price-to-SOL ratio? Market-cap-to-cash-flow? Or, concentrate on moving first? - Growth to Re-distribution balance: no hard numbers were agreed; participants leaned toward a flexible rule linked to opportunity and context. - Which mechanisms: auctions, fee-switches, buy-backs (smart, but how?), others? More than one? Which ones? - Governance workflow: structurally how do we get the tools built, does every parameter change require a full DAO vote? Levels of autonomy? What kind of mandate can we build? * * * ### 5. Immediate next steps 1. Proposal drafting – Andrew, Nick (and volunteers) will begin forging a proposal framework and start thinking about how we can get the DAO to truly build its own tokenomics function. 2. Forum dialogue – Let’s keep the conversation going here, it’s high quality and shaping the roundtables and the proposal. Consider it an important backchannel to the roundtables. 3. Round-table #2 – cover more mechanisms, get more expert insight, and continue the thinking. Any feedback on #1 most appreciated. 4. JIP submission – target this month to keep momentum and capitalise on current chain activity and sentiment. * * * ### 6. Take-away in one line The DAO agrees Jito’s cash flows are an extremely high value strategic asset that need to be activated; the challenge is to forge a DAO strategy for getting the mechanisms in place that utilise valuation-aware triggers, whilst maintaining maximal decentralisation – tooling work starts immediately post vote, roundtable two, next week. --- _[View the full topic](https://forum.jito.network/t/jto-utility-and-tokenomics/646)._