Jito DAO, a Solana-oriented liquid staking solution, is mulling over 7.5 million dollars of conventional JTO token expenditure for liquidity mining. The figure amounts to approximately $29 million, as per the present pricing. It is a segment of the total 240 million JTO holding about the DAO’s treasury, amounting to 3.1%.
It is the second governance suggestion to the Jito DAO after the JTO airdrop in December last year. Gauntlet, a DeFi research company, made the suggestion. Gauntlet terminated its association with Aave’s DAO due to incompatibility.
Jito is known to operate Solana’s biggest liquid staking solution, having a total value locked (TVL), per DeFilama. Solana verifiers amounting to 78% operate its Solana verifier fork, known as Jito-Solana. The protocol is responsible for allocating maximal extractible value (MEV) rewards, mainly as tips offered by traders to verifiers, with expectations that their transactions will be successful for the holders of its JitoSOL liquid staking token.
A point to be observed is that the MEV gathered by verifiers through Jito has gone beyond the MEV forwarded to Ethereum verifiers in recent times.
Advertisement
Certain growth patterns about TVL are attributed to the points mechanism, which is responsible for earning on-chain users’ distributions during the JTO airdrop and pushing funds toward the protocol.
After completing the points-oriented incentives, Jito made negligible payments towards incentive schemes. This is while Solana liquid staking companies, Marinade and Blaze, are maximizing incentive-related investments.
As per Gauntlet, Jito needs to allocate a certain amount from its treasury to various liquidity mining ideas. Three team members of the Jito Foundation and two team members from Jito Labs will manage the funds.
The governance suggestion has received no response but will remain active for a month, after which it will be forwarded to the DAO’s voting platform.
Advertisement
A delegate belonging to the Jito Foundation, Ian Unsworth, approves of the governance suggestion.
