Jito DAO may start taking in MEV fees
Jito DAO is poised to change the distribution of maximal extractable value (MEV) fees within the Solana blockchain ecosystem. The proposal suggests reallocating 3% of all MEV tips to the DAO treasury and the TipRouter program, which supports Jito's upcoming restaking platform. Jito Labs will also lower its share of tips from 5% to 3%, raising the overall tax on Jito MEV tips from 5% to 6%. This shift is projected to generate approximately $22.8 million annually for the DAO. MEV represents profits from strategically reordering blockchain transactions, with Jito’s validator client facilitating this process. From March to September, Jito MEV tips amassed around $232 million in economic value, representing a significant portion of Solana’s revenue. The proposal may redistribute these rewards, benefiting stakers more and reducing earnings for Jito Labs. A small portion of the fees will also support TipRouter, a mechanism designed to distribute MEV tips programmatically. This proposal is expected to gain traction in governance votes, as it promises substantial revenue for the DAO.
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