Jito Delegates Call #9

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Jito
@jito_solNov 11, 2025

The Spaces covered Jito DAO’s Delegate Call # 9, focusing on five proposals and one community update. Nick (Head of Governance) outlined a push toward on-chain value accrual and decentralized, executable governance. GIP-26 extends the Crypto-Economic SubDAO budget to sustain 100% of network revenue buybacks while completing a TWAP and a novel epoch auction mechanism that induces market demand for JTO; Ian reported 3.2M in buybacks for 2.15M JTO and invited researchers. GIP-27 introduces directed staking to the stake pool, enabling large holders and DeFi protocols to allocate to preferred validators beyond the top-400, while preserving a significant permissionless tranche; Max’s mechanics questions were clarified by Chris. GIP-28 accelerates BAM (Block Assembly Marketplace) adoption by ramping delegation rewards for BAM-running validators, aiming to make BAM a StakeNet criterion as adoption reaches ~40%. GIP-29 extends the MetaDAO futarchy grants experiment without new tokens, enabling more flexible, KPI-based market designs; Cullen emphasized iteration to replace committees with market signals. GIP-30 ensures JitoSOL holders gain full parity in Solana’s upgraded governance via an MCN-based snapshot and a governance subDAO with a trigger quorum. A GIP-21 community update from Couga highlighted Jets (regional builder programs), events, and a BAM-focused bootcamp.

Jito DAO Delegate Call # 9 — Comprehensive Notes and Analysis

Overview and Participants

  • Host: Nick — Head of Governance at Jito. Facilitated the session and provided context across proposals and governance.
  • Speakers:
    • Ian — Lead voice for the Crypto-Economic SubDAO (CST) and GIP 26.
    • Max — Delegate; asked mechanical questions on directed staking (GIP 27).
    • Chris — Jito team; answered validator eligibility and directed staking mechanics (GIP 27). Nick initially referenced Brian, but Chris provided the definitive answer.
    • Cullen — MetaDAO delegate (futarchy); discussed GIP 29 and futarchy design considerations.
    • Couga — Lead for the Jets (Jito Expansion Team) Europe; provided the JP 21 community update.
    • Hayden — Jito internal restaking lead; identified as the point of contact for MCN grants.
  • Audience references: Mert (re SIMD-228), Tusha/Tushar (collaboration on Solana governance upgrades), XO team (architecture support for governance/MCN voting).

Nick framed the session around five GIPs (26–30) plus a community update (JP 21), noting Jito DAO’s accelerated cadence and on-chain execution model via SPL governance. Votes are expected to be batched next week (targeting around the 18th), with a five-day voting window, two-day cool-off, and direct protocol upgrades upon execution.

GIP 26 — Extend Budget for the Crypto-Economic SubDAO (CST)

  • Scope and intent:
    • Extend the CST budget by an additional 50,000 JitoSOL-equivalent to continue R&D and operations around value accrual mechanisms for JTO (Jito token).
    • Maintain 100% of network revenue routing to buybacks of JTO.
  • Current status and metrics:
    • Ian: Current annualized revenue run-rate used for buybacks is around $12.5M, continuing the policy of 100% revenue buybacks.
    • Executed to date: ~$3.2M of buybacks for ~2.15M JTO, representing ~54 bps (0.54%) of current circulating supply.
    • Nick added broader context that DAO revenue can be around ~$30M annualized depending on network activity; the CST’s operational budget ensures the buyback pace can match network revenue while mechanisms are finalized.
  • Mechanisms in flight:
    • TWAP buybacks currently in use.
    • Auction-based buyback mechanism:
      • Epoch-based auctions of JitoSOL revenue “blocks” (tips) where participants bid in JTO.
      • Goal: Induce a market that accumulates JTO to compete for revenue, strengthening JTO demand and aligning buybacks with market dynamics.
    • “Vault” architecture (secondary mechanism): A routing layer from the treasury to multiple mechanisms (e.g., smarter TWAP, auction). DAO governance will decide the routing mix to optimally tie value accrual to JTO.
    • Research program:
      • Agent-based simulations of auction dynamics; ongoing independent research focus with a Salana (Solana) specialization.
      • Open call: Independent on-chain researchers, especially with Solana focus, are invited to collaborate.
  • Strategic takeaway:
    • Jito DAO is moving toward an autonomous, research-driven treasury with on-chain, novel buyback mechanisms that deeply link protocol value accrual to JTO.

GIP 27 — Directed Staking within SteakNet/JitoSOL Pool

  • Background (from GIP 25):
    • Validator set expanded from 200 to 400.
    • Scoring moved away from vote credits (which had induced adverse “PvP” behaviors) to crypto-economic metrics: base commission, MEV commission, and validator age. This change aimed to shape the validator set for both Jito and network health, reducing toxicity.
  • Core change in GIP 27:
    • Introduces directed staking for the JitoSOL pool, enabling large holders/DeFi protocols to direct stake to specific validators (including those not currently in the top 400).
    • This is designed to:
      • Accelerate TVL growth in JitoSOL.
      • Align major SOL holders and DeFi projects with JitoSOL product utility.
      • Allow advocates of public-good validators, core contributors, etc., to explicitly support them while using JitoSOL.
  • Mechanics clarified (Max’s questions, Chris’s answers):
    • Eligibility is an “umbrella” system:
      • Validators must meet binary eligibility criteria (e.g., commission limits, non-malicious behavior).
      • There is a broader set (≈700 eligible validators) beyond the top 400 ranked.
    • Directed staking allocations are in a separate bucket; adding a validator via directed staking does not kick out any validator from the top 400.
    • Net effect: The pool can effectively account for >400 validators when including directed staking allocations.
  • Safeguards:
    • Jito will preserve a substantial permissionless slice of the pool (Nick cited at least ~10M SOL-equivalent remaining under the existing permissionless mechanism), ensuring the system’s open access ethos is retained.
  • Strategic takeaway:
    • Directed staking is a pragmatic BD and decentralization tool: it unlocks JitoSOL for validator-operators and stakeholders who need control over delegation, while maintaining permissionless allocations and improved crypto-economic scoring.

GIP 28 — Accelerate BAM (Block Assembly Marketplace) Adoption via Validator Incentives

  • Product context:
    • BAM is a block-building solution leveraging trustless execution environments for deterministic, high-fidelity blocks.
    • Enabler for complex on-chain market structures (e.g., perps), intra-block ordering, and advanced execution quality.
    • Adoption status: Nearing ~20% of network stake using BAM; adoption is accelerating.
  • Proposal mechanics:
    • JitoSOL delegation within the pool will ramp toward validators running the BAM client.
    • Initial phase: ~20% of delegation directed to BAM nodes.
    • As mainnet BAM stake increases (e.g., 20→30→35→40%), JitoSOL delegation skews more toward BAM-running validators.
    • Once BAM reaches ~40% mainnet stake, BAM becomes a core SteakNet criterion.
  • Governance execution:
    • GIPs 25, 27, and 28 are on-chain execution votes via SPL core governance contracts.
    • Target voting around the 18th (subject to development readiness), with 5-day voting and 2-day cool-off windows.
  • Strategic takeaway:
    • Jito leverages validator incentives in JitoSOL to strategically accelerate BAM adoption, aligning product performance gains with network-wide block quality improvements.

GIP 29 — Update MCN Grants Program and Commit to Futarchy Experimentation

  • Context:
    • Jito has long supported MetaDAO’s futarchy approach, using prediction markets to inform decisions.
    • Prior GIP (e.g., GIP 7) used futarchy to govern a grants program for MCNs (node consensus networks), aiming to onboard and prove value in restaking-like architectures (Solana-native analogue to EigenLayer-style concepts).
  • Results to date:
    • Switchboard was successfully selected by the market; it shipped over $1M of network value. The futarchy mechanism matched committee-like outcomes without negative surprises.
  • Proposal specifics:
    • No new token ask; extend the scope/timeline to iterate and improve the futarchy-based grants framework.
    • Commit to continuous experimentation: KPI selection, payout streams, milestone-based designs, accountability mechanisms.
    • Process transparency: Any changes to grant structure/KPIs will be posted in the official GIP forum thread prior to market rounds.
    • Operations:
      • Hayden (restaking lead) will work with prospective teams.
      • MCNs produce clear on-chain value metrics; futarchy markets predict target attainment.
      • If targets are met (as predicted), projects receive extended payouts — strengthening incentives.
  • Cullen’s perspective:
    • Futarchy didn’t do something “alien” relative to a committee; it reached reputable outcomes and paid out appropriately.
    • Emphasis on flexibility: numbers/thresholds aren’t ordained — iterate toward what works best on Solana rather than waiting for Ethereum precedents.
  • Strategic takeaway:
    • Jito DAO is affirming futarchy as a governance primitive for grants, aiming to reduce bureaucracy/capture and let markets guide resource allocation to high-value MCNs.

GIP 30 — Ensure JitoSOL Participation in Solana-Level Governance

  • Background (SIMD-228):
    • A landmark vote to reduce inflation engaged ~60–70% of network stake and resulted in a “no,” underscoring Solana’s decentralized reality.
    • Lessons learned: Validator-only voting is not final-form governance; the next upgrade empowers stakers with vote sovereignty to override validator votes.
  • Upcoming governance framework:
    • Solana introduces SGPs (Solana Governance Proposals) as the voting class.
    • SIMDs (technical proposals) continue optimistically unless elevated to SGP by validators; this keeps core development agile but subject to decentralized checks.
    • MCN infrastructure will be used for network-wide vote tallying.
  • JitoSOL parity and tooling:
    • Objective: JitoSOL holders should have governance utility parity with native SOL stakers.
    • Mechanism:
      • Pre-vote among JitoSOL holders prior to Solana validator votes.
      • If trigger quorum is met (≥10% of JitoSOL participating), the JitoSOL Pool will cast its vote consistent with JitoSOL holder signal.
    • Snapshots across DeFi:
      • JitoSOL is used across pools, vaults, and protocols (e.g., Camino). The plan is to snapshot JitoSOL balances recursively across DeFi to capture voting weight accurately.
      • XO team is engaged on the architecture; this may roll out over successive iterations.
  • Timeline and collaboration:
    • Aim to be ready for the first relevant SGP once the network upgrade lands.
    • Nick has been collaborating with validators and contributors (e.g., Tusha/Tushar) on a draft Solana Constitution; community input will be invited around Breakpoint.
  • Strategic takeaway:
    • This proposal ensures JitoSOL holders participate directly in Solana governance, materially decentralizing power beyond validators and potentially amplifying JitoSOL community signal.

JP 21 — Community SubDAO (Jets) Update

  • Lead: Couga (Jets Europe); Sushi leads APAC/Asia.
  • Initiatives and achievements:
    • Events across Ireland, France, UK; building a grassroots presence (notably London).
    • “Runway” program: supporting working products (example: project “Unregulable”) with socials, user acquisition, and financial incentives (including JTO), reported as effective.
    • Bootcamp “ItStop”: next week in Paris; an early-2026 UK edition is planned (alpha). Focused on experienced devs, deep-dives into BAM and Solana’s highest-priority topics.
  • Call to action:
    • Builders using Jito tools (BAM, MCNs, validators) should reach out via the Jets website form (linked from the Jito site) to map regional needs and tailor support.
  • Nick’s framing:
    • JP 21 is Jito’s “superteam-like” grassroots expansion; halfway through the current term with two sub-groups spun up.
    • Plan to return to the DAO with progress and proposals to expand to additional regions, accelerating builder engagement, BAM plugins, MCNs, and validator onboarding.

Governance, Timelines, and Process

  • Proposals: GIPs 26–30 are tracking for a batch vote next week (target ~18th), with SPL on-chain execution.
  • Voting: 5-day window, 2-day cool-off; execution upgrades the protocol directly.
  • Coordination: Delegates should monitor the delegate chat for scheduling updates.
  • Engagement: The forum (forum.jito.network) hosts official GIP threads; community input is encouraged.

Key Highlights

  • Value accrual: DAO reaffirmed 100% network revenue → JTO buybacks (GIP 26), with advanced auction mechanisms and a vault-based routing framework under research.
  • Product-market growth: Directed staking (GIP 27) addresses real stakeholder needs (validators, DeFi projects, public-good alignment) while preserving permissionless allocation.
  • Infrastructure leadership: BAM adoption incentive (GIP 28) uses JitoSOL delegation to accelerate high-fidelity block building; BAM poised to become a core SteakNet criterion.
  • Governance innovation: Futarchy for MCN grants (GIP 29) showed promising early results; Jito commits to iterative refinement and transparency in design changes.
  • Network-level voice: JitoSOL governance parity (GIP 30) aligns with Solana’s staker-sovereignty upgrade, including DeFi-aware snapshots and trigger quorum mechanics.
  • Community execution: Jets (JP 21) is delivering on-the-ground momentum and programs for builders; Europe and Asia tracks active.

Open Questions and Follow-ups

  • GIP 26:
    • Clarify the reconciliation between $12.5M vs. ~$30M annualized revenue figures (likely time-window or scope differences).
    • Publish detailed specs and timelines for the auction mechanism and vault routing, including parameter governance.
  • GIP 27:
    • Document the binary eligibility criteria and the broader eligible validator list; define the exact size/rules and updates cadence.
    • Formalize the minimum permissionless allocation (the ~10M SOL-equivalent guardrail) and its governance control.
  • GIP 28:
    • Publish precise ramp thresholds and delegation curves; define how BAM client conformance is verified.
  • GIP 29:
    • Provide the next iteration of KPIs, payout schedules, and accountability mechanisms; formalize milestone tracking and market parameters.
    • Announce forthcoming market rounds and application processes.
  • GIP 30:
    • Provide a technical spec for JitoSOL DeFi-aware snapshotting (vaults, LP tokens, rehypothecation paths).
    • Share the trigger quorum rationale and any fallback rules if quorum is not met.
    • Coordinate with the broader Solana Constitution draft and SGP roll-out timelines.

Closing Notes

Nick closed by reiterating the plan to get all five GIPs to vote before Breakpoint, encouraging delegates and builders to engage on the forum, follow Jets (Jet Europa) and reach out for collaboration. The Cabal members and broader community presence were acknowledged as part of the Community SubDAO vision.