What Is Jito (JTO)? Solana’s MEV-Optimized Liquid Staking Solution

Modified on Mon, 15 Sep at 4:13 PM

What Is Jito (JTO)? Solana’s MEV-Optimized Liquid Staking Solution

The Solana blockchain has quickly become a powerhouse for decentralized applications, thanks to its impressive speed and low transaction fees. At the forefront of its rapidly evolving ecosystem is Jito, a liquid staking protocol that stands out by tackling one of blockchain's most intricate challenges: Maximal Extractable Value (MEV). Jito doesn't just make staking more efficient; it introduces a unique way to share MEV profits with its users, making it a pivotal player for crypto enthusiasts and anyone curious about the cutting edge of DeFi.

What is Jito (JTO)?

Jito is a liquid staking protocol built on the Solana network. It allows you to stake your Solana (SOL) tokens and get JitoSOL in return. Unlike traditional staking where your assets are locked up, JitoSOL is a Liquid Staking Token (LST). This means it represents your staked SOL and its earned rewards, yet it remains fully accessible for use across various decentralized finance (DeFi) protocols on Solana. You can leverage your JitoSOL for lending, borrowing, providing liquidity, and yield farming, essentially allowing your capital to earn multiple layers of yield simultaneously.

Jito's Standout Features

Jito's most compelling features largely revolve around its innovative approach to MEV and its unwavering commitment to decentralization:

MEV Optimization and Distribution: This is arguably Jito's most distinctive characteristic. MEV refers to the profit validators can extract by strategically reordering, including, or excluding transactions within a block. On Solana, this often leads to network congestion. Jito addresses this by implementing an auction-based system where "searchers" (arbitrageurs, liquidators) bid for the right to include profitable transaction sequences. A portion of these MEV profits is then redistributed to JitoSOL holders, offering an additional yield layer beyond standard staking rewards. This system aims to reduce network spam caused by aggressive MEV front-running attempts.
Liquid Staking with JitoSOL: The liquid nature of JitoSOL offers unparalleled capital efficiency. Instead of tying up your SOL, you get a token that continues to accrue staking and MEV rewards while remaining usable in Solana's dynamic DeFi landscape. The exchange rate of JitoSOL to SOL continuously increases as rewards accumulate, automatically compounding value for holders.
Decentralization via StakeNet: Jito is dedicated to fostering a more decentralized Solana network. Its StakeNet program intelligently delegates staked SOL to a diverse set of high-performing validators, preventing stake concentration and enhancing network robustness. This autonomous stake pool manager uses a Validator History Program and Steward Program to evaluate and rank validators, ensuring optimal stake allocation.
Reduced Network Congestion: By introducing an efficient MEV auction mechanism, Jito helps mitigate the "spam" transactions that can arise from MEV capture attempts, thereby contributing to a smoother and more efficient Solana network.

Who Founded Jito?

Jito was co-founded by Lucas Bruder and Zano Sherwani. Their vision for Jito grew from recognizing the significant potential of MEV within rapidly expanding blockchain networks like Solana, and a strong desire to build infrastructure that optimizes its capture and distribution for the benefit of both stakers and overall network health.

What is the JTO Token?

The JTO token serves as the native governance token for the Jito Network. It empowers its holders to participate directly in the decentralized governance of the protocol. This includes:

Setting fees: JTO holders can vote on the fee structure of the JitoSOL stake pool.
Updating delegation strategies: They have a say in how SOL is delegated to validators through the StakeNet programs.
Treasury management: JTO holders manage the treasury of JTO tokens held by the Jito DAO.
Protocol development: They contribute to the ongoing growth and improvement of Jito's various products and protocols.

In essence, JTO tokens give community members a voice in shaping the future direction and policies of the Jito Network.

Token Allocation and Tokenomics

The JTO token has a total supply capped at 1,000,000,000 JTO. The allocation strategy is designed to promote community growth, ecosystem development, and reward early contributors and investors, with vesting schedules in place to ensure long-term alignment.

Key allocations include:

Community Growth: Approximately 34.3% of the total supply is dedicated to fostering the Jito community. This includes an initial retrospective airdrop of 10% to early users and contributors, with the remainder controlled by DAO governance for future initiatives.
Ecosystem Development: Around 25% of the supply is allocated to fund communities and contributors driving the expansion of Jito's protocol on Solana, including advancements like StakeNet.
Core Contributors: Approximately 24.5% is allocated to Jito's founders, current and future employees, and early contributors to the ecosystem. These tokens typically have vesting schedules, often with a 1-year cliff and linear unlocking over 2-3 years.
Investors: Roughly 16.2% is allocated to investors who supported Jito's early development. These tokens also follow a similar vesting schedule to core contributors, with a 1-year cliff and linear unlocking over 2-3 years.

The tokenomics aim to cultivate a sustainable and decentralized ecosystem where stakeholders are incentivized to contribute to the network's long-term success. Token releases are staggered through vesting periods, which helps prevent large sell-offs and promotes the gradual decentralization of governance power.

JTO Price Snapshot

As of Friday, 4 July 2025, at 5:49 PM +07, according to CoinMarketCap, the JTO token has a market capitalization of $711,433,258 USD.

Currently, JTO is trading at approximately $2.06 USD per JTO. It reached its all-time high of $5.61 USD per JTO on 7 December 2023.

References