According to BlockBeats, on August 5, Jito Labs initiated a new governance proposal named JIP-24 on Tuesday, aimed at further decentralizing the network. The proposal suggests that all transaction fee revenues from the Block Engine and Block Assembling Market (BAM) be directly routed to the Jito DAO treasury.
If the proposal is approved, the DAO will take over the revenue streams of the protocol and distribute them to JTO token holders. This move will reduce Jito Labs' own control over the Jito network, while allowing a sub-governance group within the DAO to play a more significant role in the development of the protocol—Jito Labs hopes this will ultimately enhance the value of the Jito token.
Currently, the rewards generated by Jito's Block Engine are: 3% allocated to Jito Labs and 3% allocated to the DAO. The JIP-24 proposal will eliminate this revenue-sharing mechanism, and in the future, all 6% of transaction fees, as well as all revenues related to BAM, will permanently belong to the DAO treasury. Jito Labs stated in the proposal: 'This proposal reflects the Jito ecosystem's commitment to ensuring that protocol fees are returned to token holders as efficiently as possible and establishes the core position of the DAO in the technological and economic governance of the Jito network.'
