CandleFocus

Jito Token Holders Slated for Payday Under TipRouter Proposal

Author: Content Editor
Jito Labs, the company behind the Solana protocol, is redesigning its economic rails to allow investors in its JTO token to collect payouts on top of their holdings. Jito Labs currently oversees the distribution of tips generated from profit-seeking bots to validators running Jito software. However, a new setup called the TipRouter will spread this burden across a network of node operators, who will reach consensus on distributing the $15 million worth of tips generated every few days. In return, node operators and JTO holders who stake their assets could benefit economically. The proposed system leverages Jito's restaking network for Solana and a new governance model called futarchy. The governance token JTO will capture direct economic upside if the proposed governance proposal JTO-10 is enacted. The TipRouter setup will be an early stress test for Jito's restaking system. While some critical elements of the design, such as a slashing mechanism, will not be ready at launch, Jito aims to incorporate them in the future.

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