Andrew deserves a ton of credit for putting in the work to lay out all these options for how the fees being generated could be used. His post should be turned into a treatise for future reference by any project.
I firmly believe that, in this case, the simplest answer is the best answer: the TipRouter fees should primarily be used to buy and burn JTO.
The real question is how much of the fees should be used for this purpose, vs for some other purpose. Or to rephrase – what alternative provides so much value to the Jito Network and JTO holders that it warrants diverting funds from buying and burning JTO.
That’s a very high bar! Dollar-for-dollar, buying and burning JTO provides the most direct and sustained support for the strength of JTO, which is central to the governance and decentralization of the Jito Network.
Imagine every other option framed as follows: “Should the DAO sell millions of its JTO in the open market to finance [insert alternative here]?” Personally, I don’t think the community would support the idea of market selling JTO to fund any of the alternatives (with the exception of supporting the restaking business).
If you wouldn’t pay for something by selling JTO, you shouldn’t pay for it by diverting funds that could be used to buy (and burn) JTO. It’s two sides of the same coin, no pun intended.
With that said, I also firmly believe big decision are best made incrementally, so the consequences can be observed and that additional information can be used to help improve implementation details over time.
As such, I have drafted a JIP (link below) that proposes using half of the TipRouter’s fees (1.5% of the 3%) to buy and burn JTO. That would still leave 1.5% to potentially be used for some other purpose, like the various alternatives outlined in Andrew’s post. I think when the community sees the impact of using fees for the buy and burn program, it will be obvious how high the bar is for judging any other alternative, and ultimately I believe the only other purpose that will meet this standard is further supporting the restaking business (which is already being supported with 0.3% of the 3%; perhaps that should be increased).
As is often said, action produces information. Debate and discussion is important, and I don’t want to appear to be cutting off debate by formally submitting my proposal as a JIP. But I want to motivate debate to action, so I have submitted a draft JIP and welcome input on the implementation details. If after reading about potential alternatives, others want to submit their own draft JIP advocating for an alternative, then hopefully we can focus our attention on the couple of best options and move forward to a vote expeditiously. Accelerate
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