Solana's Jito Proposes Routing 100% of Block Engine Fees to DAO Treasury

Jito Labs proposed a new governance proposal on Tuesday, called JIP-24, aimed at decentralizing the network further by routing all its Block Engine and Block Assembly Marketplace (BAM) fees directly to the Jito DAO treasury.

If approved, the DAO would assume control over protocol revenue streams, directing them to the network's JTO tokenholders. This in turn would reduce Jito Labs' own influence over the network of the same name, while a DAO subgroup takes on a greater role in development — which in turn Jito Labs hopes will ultimately boost the Jito token's value.

Currently, rewards from Jito’s Block Engine are split evenly — 3% to Jito Labs and 3% to the DAO. JIP-24 would eliminate this split, sending the full 6% of fees, along with all future BAM-related revenue, to the DAO treasury permanently.

“This proposal reflects the commitment of the Jito ecosystem to ensure that protocol fees accrue directly to the token holders as optimally as possible and cements the DAO as central to the technical and economic governance of the Jito Network,” the Jito Labs team wrote in their proposal.

The Jito Network operates as a key block-building layer within Solana’s ecosystem, offering MEV-focused tools like its Block Engine and BAM to optimize transaction sequencing and fee distribution. These tools allow validators to earn additional rewards while aligning incentives between network participants and tokenholders.

A core element of the proposal is BAM, Jito’s recently launched marketplace for programmable block assembly on Solana. BAM introduces “plugins” that can modify transaction sequencing logic, potentially unlocking new revenue streams. According to the proposal, fees from BAM, particularly those linked to plugin activity, would also be routed to the DAO, contributing to what the team estimates will be $15 million in new annual revenue.

The proposal also earmarks those funds for initiatives developed by the Cryptoeconomics SubDAO (CSD), a governance subgroup tasked with designing tokenholder-facing value accrual strategies.

If passed, JIP-24 would represent a significant shift in how Jito’s protocol revenue is governed, expanding the DAO’s financial role and giving tokenholders a greater stake in the network’s long-term direction.

Read: Jito Launches BAM to Reshape Solana’s Blockspace Economy