The Solana transactions volume has risen over the last three years. Building out the tooling to support the network created a profitable dilemma: What do you do with the rapidly increasing treasury fund?
For Jito Network, which processes over half of Solana's transaction fees and has amassed protocol revenues, the question has led some to think of ways to deploy available capital rather than hoarding it.
Jito Foundation contributor Andrew Thurman Published by: The Jito DAO submitted a detailed proposal on Thursday to examine how it could use its expanding revenue streams.
"Jito is in a unique position," Thurman wrote. "There are not many examples of DeFi ecosystems which have generated as much real value as quickly as the Jito Network."
The proposal, which Thurman claims represents his views rather than any official position, is a response to Jito Network's rapid ascent within Solana's ecosystem.
Thurman, a Thurman-backed claim, claims that the protocol has received 4% of JitoSOL stake rewards plus 3% tips via TipRouter. Kairos Research
The proposal revolves around a central idea. "buyback and barter" Mechanism whereby protocol fees are swapped with JTO, and then strategically allocated to DAO partners.
The tokens would be removed from circulation and replaced with new ones. "industry-altering handshakes" between protocols, Thurman explained.
It also includes details about a "real yield gauges" Curve is a great example of a voting system that allows JTO owners to vote for the actual revenue generated by the protocol, rather than inflationary rewards.
Thurman says this would be a good thing "close to a novelty in terms of DeFi" Only a few gauge systems use real yield.
For treasury management, the proposal suggests establishing protocol-owned liquidity positions that would generate revenue while ensuring market depth during volatile periods—addressing a critical infrastructure need.
Thurman’s most significant contribution is his new decision-making structure that visually depicts the balance of both. "recycling" (ecosystem reinvestment) and "rewards"Moving beyond passive accumulation
He acknowledged that these experimental mechanisms were also examined in the proposals.
"No one knows what they're doing," Thurman admits candidly, alluding how Jito is currently navigating pioneering terrain as it decides whether or not to concentrate on hypergrowth and begin to return value to ecosystem stakeholders.
Sebastian Sinclair is the editor
