Jito Foundation Completes $1 Million JTO Token Buyback, Doubles DAO Fee Structure

The Jito Foundation, operator of the Solana-based liquid staking protocol, announced the completion of its first $1 million JTO token buyback program and the implementation of several tokenomics updates on September 4, 2024. The foundation's Cryptoeconomics subDAO executed the buyback over 10 days in four phases between August 22 and September 1, 2024. 

The buyback program represented the first major value accrual mechanism deployed by the Cryptoeconomics subDAO, which was established through JIP-17 earlier this year . The subDAO purchased JTO tokens using a time-weighted average price strategy across different transaction frequencies, ranging from hourly purchases to minute-by-minute acquisitions. Phase 1 involved $100,000 in hourly purchases over 2.5 days, achieving an average JTO price of $1.7164, while subsequent phases increased both frequency and size, with the final phase executing $400,000 in hourly purchases at an average price of $1.9067.

Simultaneously, the foundation implemented JIP-24, which redirects all Block Engine fees to the DAO treasury. Previously, the 6% fee structure was split equally between Jito Labs and the DAO under JIP-8. The new proposal channels the full 6% fee from the Jito Block Engine and future Block Assembly Marketplace fees directly to the DAO treasury . This change significantly increases fee flows available for token buybacks and other value accrual mechanisms.

The foundation also launched the JTO Economic Hub, a real-time dashboard providing insights into protocol health, revenue, financials, governance, and token performance. The platform will track ongoing buyback metrics as the Cryptoeconomics subDAO continues its operations.

Jito has scheduled its first tokenholder call for September 24, 2024, where leadership will present quarterly growth updates and future plans while offering a Q&A session for token holders. The foundation emphasized its commitment to ensuring protocol fees accrue directly to JTO token holders through optimal mechanisms.

The Cryptoeconomics subDAO is developing additional value accrual mechanisms beyond traditional buybacks, including "The Vault" for connecting DAO operating instructions to multiple sub-mechanisms, "The JTO Auction" for auctioning JitoSOL blocks purchasable with JTO tokens, and "Intelligent Buybacks" enabling AI agents to accumulate JTO . The subDAO operates on a 12-month term with front-loaded spending for mechanism development and value accrual initiatives.