cryptonews.com
The Jito Foundation is introducing a governance token designed to oversee and stimulate the development of the Solana-based liquid staking protocol.
In a statement released on Monday, the company disclosed plans to create 1 billion JTO tokens to facilitate the governance of its Jito Network. This includes tasks such as establishing fees for the JitoSOL staking pool, overseeing revenue, and managing the DAO treasury.
Initially, 115 million JTO tokens will be in circulation. The allocation plan designates 34% of the tokens for community growth, 25% for ecosystem development, 24.5% for core contributors, and 16% for investors.
With the launch of JTO tokens, Jito Foundation seeks to empower “community members to have a direct impact on the decision-making and direction of the Jito Network,” the organization said.
As part of the Jito Foundation, Jito Labs constructs infrastructure aimed at alleviating the adverse effects of maximum extractable value on Solana.
Solana Foundation said last month that nearly a third of its stake is running through the Jito Labs client, while the Jito Foundation revealed in its announcement that the Jito MEV network of validators is currently being utilized by over 40% of the Solana network’s stake weight.
10% of the tokens will be distributed as an airdrop to Jito community members, the Jito Foundation added, acknowledging its members’ contributions to bootstrapping the network and ensuring their participation in governance right from the outset.
The Foundation is overseen by two independent Directors, Matt Shaw and Glenn Kennedy, and a supervisor provided by FFP Corporate Services. Webslinger, an advisory firm specializing in prominent crypto projects, will serve as the DAO administrator.
Token holders will wield ultimate control over the Foundation, possessing the authority to remove both the supervisor and the two independent directors. Jito noted that its Foundation would release regular transparency reports to keep stakeholders informed.
Jito Foundation will be governed by its Constitution, Bylaws and Articles of Association and Memorandum of Association, with the company promising to provide further detail when possible.
Jito Labs investors include Solana Ventures and Solana Labs co-founder Anatoly Yakovenko. Last year, the company raised $10 million in a Series A funding round led by Multicoin Capital and Framework Ventures, with other investors including Alameda Research, Solana Ventures, Delphi Digital and Robot Ventures.