What is Jito? Information about the Jito project and JTO token

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25 Jan 2024

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Jito, the LSD project on Solana, announced the $JTO token airdrop with 10% of the total supply reserved for the community at the end of December. Along with being listed on most major exchanges including Binance and Coinbase, Jito will probably be the biggest airdrop project in 2023. So what is the Jito project? Let's find out through this article.

What is Jito?

Jito is the first liquid staking project on the Solana chain. Jito allows users to deposit SOL tokens into the project and receive back JitoSOL, a form of liquid staking token of Jito. JitoSOL not only provides liquidity but also has the ability to benefit from both staking and MEV.

What's special is that Jito selects validators based on the performance and reliability of that validator, to improve performance and minimize congestion on the blockchain. In addition, Jito also implements an auction system for MEV transactions, helping to optimize benefits for those staking on Jito.

JTO token is listed on Binance causing a fever.

What is MEV (Miner Extractable Value) on Jito?

MEV (Miner Extractable Value) on Jito is about making profits from arranging the time of transactions on the Solana blockchain. On Jito, MEV works as follows:

When there are price differences between DEXs on Solana (such as Orca, Raydium, Serum), traders can exploit these price difference orders to make profits. For example, a large trade on one exchange can temporarily reduce the value of an asset on that exchange, creating an opportunity to buy low and sell high on another exchange.
In cases where accounts with large amounts of assets on lending platforms (like Solend) are close to liquidation, bots compete to process the liquidation as soon as the account crosses the threshold.

Thereby, Jito has implemented a unique mechanism to manage and distribute profits from MEV:

Jito's validator server uses an auction system where traders bid on chains of transactions they believe are profitable.
Funds from these auctions are then distributed to validators and subsequently to JitoSOL holders.

This approach not only optimizes MEV operations, but also shares MEV profits with JitoSOL holders, providing an additional source of income in addition to the usual staking rewards. This is a method of improving MEV mining efficiency while contributing to the safety and decentralization of the network.

How the Jito project works

Jito operates as a normal liquid staking solution on the Solana blockchain, integrating MEV rewards into the profit structure for users. Here's how Jito works:

Users stake Solana (SOL) tokens through Jito. In return, they receive JitoSOL, a liquid staking token. This process converts their staked SOL into liquid form, allowing them to participate in decentralized finance (DeFi) activities without losing staking rewards.
Jito chose to stake SOL with high-performance validators on the Solana network. These validators are selected based on criteria such as network performance, reliability, and contribution to network decentralization.

Stakeholders earn rewards in two forms:

Staking rewards: This is the traditional reward from SOL staking distributed by validators.
MEV Rewards: Jito implements an auction system for trade placement, where traders bid on profitable trade chains. Revenue from these auctions is then shared with validators and JitoSOL holders.
MEV Auction System: This system reduces online spam by eliminating traders from spamming multiple trades at the same time to catch up with MEV opportunities. Instead, they bid in an auction, and the winning bidders get to process that transaction.

How Jito works.

Holding JitoSOL allows users to participate in DeFi activities such as lending or harvesting profits from MEV, while their original stake continues to earn rewards.

JitoSOL is designed to ensure project control and security, built on Solana's stake pool program. Users can unstake their SOL by converting JitoSOL back to SOL at any time. Additionally, they can also sell JitoSOL on the secondary market to receive immediate liquidity.

Jito's TVL reached 6.3M SOL in December with an APY of 6.97%

Detailed information about JTO token

JTO token is the governance token of the Jito project. JTO enables token holders to participate in making key decisions for the network, including setting fees, determining delegation strategies, and managing the project's treasury. JTO token provides power to the community in shaping Jito's policies and development direction.

JTO tokenomics

Token name: Jito
Ticker: JTO
Blockchain: Solana
Token Standard: SPL
Contract: jtojtomepa8beP8AuQc6eXt5FriJwfFMwQx2v2f9mCL
Token Type: Utility, Governance token
Total Supply: 1,000,000,000 JTO

JTO token allocation

JTO Token Allocation.

Investor's JTO token vesting schedule

Investor's token vesting schedule.

Jito team's JTO token vesting schedule

Jito team's token vesting schedule.

JTO's expected total supply over time

JTO's expected total supply over time.

Airdrop token JTO

Jito Foundation has announced the JTO token airdrop program, reserving 10% of the total token amount (100,000,000 JTO) to airdrop to the community, to recognize and reward their contributions to the development of the Jito Network. In this distribution, 90,000,000 JTO tokens will be airdropped immediately, while the remaining 10,000,000 tokens will be gradually unlocked over a year.

Eligibility for receiving the airdrop is based on the user's level of participation and contribution to the project, including long-term holding of JitoSOL, interaction with JitoSOL on DeFi platforms, activity of Solana validators using MEV servers Jito-Solana.

The JTO token airdrop will take place as follows:

Instant airdrop: 90,000,000 JTO tokens distributed immediately.
Progressive unlocking: An additional 10,000,000 JTO tokens will be unlocked over the next year.

Those eligible for the airdrop include:

JitoSOL users have at least 100 accumulated points by November 25, 2023.
Jito-Solana Validators operated the server from epoch 366 to 536, and continued to operate the server thereafter.
MEV Researchers on Jito who have tipped (“tip” refers to a voluntary payment or fee paid by researchers to the network or validators) of at least 1 SOL before November 25, 2023. This tip is a form of form of contribution to the network and is used as a criterion to determine eligibility for the JTO token airdrop.

Jito's project team and investors

Project team

Updating…

Investors

Jito Labs has raised $10 million in Series A funding. The round was led by Multicoin Capital and Framework Ventures. Other investors include Solana Ventures, Delphi Digital and Robot Ventures.

Angel investors include Solana Labs Co-founder Anatoly Yokavenko, Coral Founder Armani Ferrante.

Jito project investors.

Should you invest in Jito?

Jito is the first LSD project on Solana, one of the highest quality MEV projects on Solana at the present time. At the same time, the unlaunched JTO token has been announced to be listed on most major exchanges such as Binance.

However, when the token is newly launched and the price is not stable, you should calmly evaluate and not rush to decide to invest.

Find out more information about the Jito project

Website: https://www.jito.network/
Twitter: https://twitter.com/jito_sol
Discord: https://discord.com/invite/jito

summary

With the launch of the JTO governance token, Jito expands community participation in project decisions and development. Support from investors and community interest, such as through the airdrop event, also partly reflects the market's attention to this project. Please follow MarginATM for more information about the Jito project.