Here’s a Look at One Contributor’s Proposal to Overhaul Jito’s Tokenomics

Solana Transaction Volume has risen over the past three years and building tooling for the network has opened a lucrative dilemma: what to do with fast collecting treasury funds.

For Jito Network, which has processed more than half of the transaction costs of Solana and collected protocol income, the question has led to some of some ways to use capital available instead of hoarding it.

Jito Foundation -employee Andrew Thurman published An extensive proposal Thursday, in which it is investigated how the Jito DAO could use his growing income flows.

“Jito is in a unique position,” wrote Thurman. “There are not many examples of defi -ecosystems that have generated as much real value as quickly as the Jito network.”

The proposal, which Thurman claims, represents his views instead of an official position, is a response to the rapid climb of Jito Network in the Solana ecosystem.

To date, the protocol receives 4% of all jitosol -strike -rewards, plus 3% of the tips that are divided through Tiprouter, according to a claim from Thurman, supported by facts from Kairos Research.

Central to the proposal is a “return and barter” mechanism where protocol costs would be exchanged to JTO and are strategically deployed to partner.

Such an approach would remove tokens from the circulation and at the same time create “industry-changing handshakes” between protocols, Thurman explained.

The proposal also describes a “real supply meters” system inspired by Curve, where JTO holders could vote on the aiming of the actual protocol income to specific liquidity pools instead of using inflatoid rewards.

Thurman notes that this would be “close to a novelty in terms of Defi”, because few Gauge systems use real yield.

For Treasury Management, the proposal for determining liquidity positions of protocol that would generate income and at the same time the market depth during the volatile periods to determine a critical infrastructure requirement.

Perhaps the most important thing is that Thurman introduces a newly structured decision -making framework that visualizes the balance between “recycling” (reinvestment of ecosystem) and “rewards”, go beyond passive accumulation.

Although the proposal is investigating precedents of protocols such as Makerdao, Raydium and Jupiter, he also acknowledged the experimental nature of these mechanisms.

“Nobody knows what they are doing,” Thurman admits frankly, referring to how Jito is currently navigating a pioneering area, because it determines whether it should concentrate on hypergrowth or returning value for ecosystem participants.

Published by Sebastian Sinclair