Jito

Jito Network plays a crucial role in the Solana ecosystem, mainly through its JitoSOL liquid staking pool and a variety of MEV-related products.

With JitoSOL, users can swap their SOL tokens and, in return, retain the liquidity and DeFi advantages of SOL while earning a yield from staking. What sets JitoSOL apart is that holders receive extra earnings from transaction revenue linked to MEV extraction on Solana.

Maximum extractable value (MEV) refers to profit opportunities that arise from the specific sequence in which transactions are executed. For instance, a significant swap on Orca might reduce the pool's price compared to Raydium or Serum. Traders will quickly attempt to capitalize on this price difference, and this kind of arbitrage is what defines MEV.

To address the negative effects of MEV, the Jito Foundation was established. It aims to distribute profits fairly and enhance transparency. Jito has also developed an open-source validator client to foster a competitive market for extracting MEV. This client facilitates auctions within each block, allowing traders to bid for the chance to capture the block's MEV. The top bidders in each block can then extract the available MEV.

JTO empowers token holders to participate in essential decision-making processes, influencing the growth and evolution of Jito Network in a way that meets the needs of its users and the wider Solana community. These decisions and initiatives might involve:
* Determining the fees for the JitoSOL staking pool
* Adjusting delegation strategies by managing parameters of the StakeNet programs
* Overseeing the treasury of JTO tokens held by the DAO, along with the fees generated from JitoSOL
* Supporting the continuous development and enhancement of Jito's protocols and products