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New Governance Token From Solana MEV Developer - Jito Foundation

New Governance Token From Solana MEV Developer - Jito Foundation

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Jito Foundation is launching a governance token aimed at both managing and spurring the development of the Solana-based liquid staking protocol.

Decentralized Empowerment

In a significant move towards decentralized governance, Jito, the Solana-based DeFi platform, has introduced its new governance token, JTO. This token aims to facilitate the management of the Jito Network, marking a crucial phase in Jito's evolution. 

Jito Labs, the entity behind Jito, specializes in building infrastructure to counter the adverse effects of maximum extractable value on Solana. The introduction of the JTO governance token aligns with the broader trend of decentralized platforms embracing governance tokens to empower their user communities with decision-making processes.

The announcement follows the recent revelation by the Solana Foundation that nearly one-third of the stake is flowing through the Jito Labs client. In a Monday update, the Jito Foundation disclosed that the Jito MEV network of validators now handles over 40% of the Solana network's stake weight.

Strategic Token Distribution

The foundation conducted a critical snapshot on November 25, forming the basis for the airdrop, taking into account user activity up to that date. 

A total of 1 billion JTO tokens have been minted to streamline network management tasks, such as setting fees for the JitoSOL staking pool and overseeing revenue and the DAO treasury. The initial circulation will involve 115 million JTO tokens. Notably, 34% of these tokens are earmarked for community growth, with 25% for ecosystem development, 24.5% for core contributors, and 16% for investors.

Snapshot And Token Airdrop

The foundation has also committed to airdropping 10% of the tokens, i.e., 100 million tokens, to Jito community members, recognizing their role in bootstrapping the network and ensuring their active participation in governance from day one. Community members are urged to stay vigilant for updates on this upcoming airdrop.

While the specific timeframe for the completion of the airdrop remains undisclosed, the foundation plans to retain 250 million JTO tokens. Of these, 162 million will be allocated to investors, and the rest will be dedicated to core contributors, ecosystem development, and various community initiatives.

Following DeFi Trends on Solana

Jito Labs has garnered investment from notable entities, including Solana Ventures and Anatoly Yakovenko, co-founder of Solana Labs. In the previous year, the company successfully raised $10 million in a Series A funding round, further solidifying its position in the Solana ecosystem.

Jito's strategic move mirrors similar initiatives by other Solana protocols, such as the Pyth network and Solana-based tokens like the JUP token. These developments underscore the dynamic and continually evolving nature of the DeFi space on the Solana blockchain, with governance tokens emerging as a standard tool to foster community involvement and drive platform growth.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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