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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