Jito Labs Proposes Transferring All Block Engine Fee and Future BAM Revenue to Jito DAO Treasury.
This proposal aims to eliminate the current revenue-sharing mechanism, enabling the DAO to control all protocol income and serve sustainable value development strategy.
- Jito Labs submits governance proposal JIP-24 to transfer Block Engine fees and BAM revenue to Jito DAO.
- The 3% Labs – 3% DAO sharing mechanism will be eliminated if the proposal is approved.
- Estimated annual revenue of around 15 million USD will be managed and developed by the DAO.
What Does Jito Labs Propose in JIP-24?
JIP-24 is a governance proposal to transfer 6% of Block Engine fees and all future BAM revenue from the Solana ecosystem to the Jito DAO treasury.
The purpose is to change the current income-sharing mechanism, eliminating the split between Labs and DAO (3% for each side). If approved, Jito DAO will have full control of these funds and implement a sustainable development strategy.
How Will JIP-24 Impact Revenue Control?
Through JIP-24, all revenue from Block Engine fees and BAM will be concentrated in Jito DAO instead of being shared between DAO and Labs.
This helps increase the DAO's authority and financial autonomy, allowing them to invest and develop long-term plans to increase value for the community and protocol.
Concentrating revenue in the DAO will promote sustainable development and future value enhancement strategies.
Excerpt from PANews report, August 2024
What Are the Revenue Estimates and Fund Usage Strategies?
Managers estimate that if the proposal becomes reality, the DAO will manage approximately 15 million USD in annual revenue from fees and BAM.
This amount will be entrusted to the Cryptoeconomics SubDAO to develop value return plans, enhance revenue mining, and benefit ecosystem members.
How Do Revenue Sharing Mechanisms Differ Before and After the Proposal?
| Old Mechanism | JIP-24 Proposed Mechanism |
|---|---|
| Sharing 6% Block Engine fees: 3% for Labs, 3% for DAO | 6% Block Engine fees and entire BAM revenue fully belong to DAO |
| Profit control dispersed between Labs and DAO | DAO exclusively manages and allocates this revenue source |
Frequently Asked Questions
What is the Main Objective of JIP-24?
The proposal aims to concentrate all Block Engine fees and BAM revenue in the Jito DAO treasury, increasing financial control for the DAO.
How Will This Revenue Transfer Impact Jito DAO?
The DAO will have full management of the revenue source, enabling more effective and sustainable value enhancement strategies.
What is the Estimated Annual Revenue from This Proposal?
Approximately 15 million USD in revenue is expected to be concentrated in the DAO annually.
What Role Does Cryptoeconomics SubDAO Play in the Proposal?
This SubDAO will use the fund to build value return strategies and economic development for the ecosystem.
How Will JIP-24 Eliminate the Old Sharing Mechanism?
It will remove the 3% Labs – 3% DAO sharing mechanism, allowing the DAO to control all related revenue.
