Jito Foundation Launches New Governance Token

Jito Foundation, the entity supporting a liquid staking protocol based on Solana (SOL), is introducing a governance token for the management of the Jito Network. A liquid staking token is a token that represents the staked amount of a given cryptocurrency on a Proof-of-Stake (PoS) blockchain. Liquid staking tokens enable people to participate in staking while still being able to buy, sell, or trade the token, providing greater flexibility and liquidity.

Improving community engagement

Jito Labs constructs infrastructure to counteract adverse effects of MEV (Maximum Extractable Value) on Solana. The launch of the token aims to enable community members to directly influence decision making as well as the overall course of the Jito Network itself.

The Solana Foundation revealed that almost a third of the stake is flowing through the Jito Labs client. In the recent announcement, Jito Foundation highlighted that the Jito MEV network of validators is currently utilized by over 40% of the stake weight.

As such, a total of 1 billion JTO tokens have been generated to organize network management, encompassing the establishment of fees for the JitoSOL staking pool and overseeing revenue and the DAO treasury.

So far so good

Initially, 115 million JTO tokens will be in circulation. Community growth is allocated 34% of tokens, with 25% for ecosystem development, 24.5% for core contributors, and 16% for investors. As a recognition of their contribution to bootstrapping the network, 10% of the tokens will be airdropped to Jito community members, allowing them to engage in governance immediately.

Finally, the foundation advises community members to stay vigilant for updates on the airdrop. Noteworthy investors in Jito Labs include Solana Ventures and Solana Labs co-founder Anatoly Yakovenko. In the preceding year, the company also secured $10 million in a Series A funding round.