Jito has unveiled a governance overhaul that would direct 100% of the DAO's JTX revenue share toward open-market JTO buybacks and permanent token burns, a program set to run at least through Q4 2027. The proposal, dubbed JIP-38, was published on July 13 and triggered an immediate market reaction, with JTO climbing as much as 8% shortly after its release, according to crypto.news.
Revenue redirected to JTO holders
Under JIP-38, Jito proposes using the DAO's entire share of JTX revenue to buy JTO tokens on the open market and permanently remove them from circulation. This arrangement would remain in place for at least one year, extending through the fourth quarter of 2027. One exception remains: 20% of JTX platform fees would continue to be reinvested into JTX development rather than being allocated to buybacks and burns. The remaining major revenue streams would flow through the DAO under governance controlled by JTO holders.
To carry out the program, buybacks would be executed automatically through a Rev Splitter mechanism overseen by the project's Dev Council. Jito also plans to update its governance documentation so the protocol's operating model formally recognizes the token-centric structure. Existing revenue allocation commitments would be completed before a comprehensive review of protocol fee streams takes place in Q4 2027. During that review, governance participants would evaluate the performance of token buybacks, ecosystem incentives, and other capital allocation methods before JTO holders vote on the network's next long-term revenue framework.
Broader governance changes
Beyond the buyback program, JIP-38 outlines several operational changes to support the new revenue structure. The Rev Splitter would become progressively more automated, and governance records would be updated to match the revised economic model. Jito stated that the framework is designed so value generated across the network accrues to the JTO token instead of external corporate entities. Any future changes to revenue allocation after Q4 2027 would require approval through governance voting by JTO holders.
The proposal arrives as Jito continues expanding its presence across the Solana ecosystem. Earlier this year, 21Shares launched the 21Shares Jito Staked SOL ETP (JSOL) on Euronext Amsterdam and Euronext Paris, providing regulated exchange-traded exposure to Solana through JitoSOL while embedding staking rewards. Institutional support has also grown: Andreessen Horowitz's crypto division invested $50 million in Jito to help expand the Solana staking protocol's ecosystem, with the investment including an allocation of JTO tokens to the venture firm.