Jito Labs has submitted governance proposal JIP-24, aiming to redirect 100% of Block Engine and Block Assembly Marketplace (BAM) fees to the Jito DAO treasury. Currently, Block Engine rewards are split 3% to Jito Labs and 3% to the DAO, but the proposal would consolidate the full 6% fee allocation plus all future BAM revenue into DAO control. This shift, initiated on August 5, 2025, eliminates Jito Labs' direct revenue stream and transfers financial governance entirely to JTO tokenholders.
The estimated $15 million in annual revenue would empower the DAO's Cryptoeconomics SubDAO to fund development initiatives, validator incentives, grants, and community distributions. Jito Labs emphasized this "cements the DAO as central to technical and economic governance" while reducing centralized influence. As a core Solana MEV infrastructure layer, Jito's Block Engine and BAM optimize transaction sequencing, with BAM's plugin-based marketplace enabling programmable block assembly for new revenue streams.
Approval would set a precedent for Solana ecosystem decentralization, aligning protocol success with community governance and potentially boosting network resilience. The proposal underscores Jito's commitment to transparent on-chain fund management and long-term protocol sustainability through tokenholder-directed treasury allocations.