Inception Capital@_inceptioncap
OP Crypto weekly research thread is here. The $JTO @jito_sol airdrop has taken place, and this is our take. Written by @thomaszink7 and @calvindhx 👇
#FridayNightHype
1/ Jito, the second-largest protocol on Solana, recently introduced its governance token, JTO, 10% of the JTO token supply was just airdropped to users who staked SOL via Jito, which at the time was to the tune of $225 million.
2/ Jito's prominence in the Solana ecosystem is underscored by the success of JitoSOL, the largest and fastest-growing Liquid Staking Token (LST) on Solana. Boasting a TVL of $6.8 million SOL, Jito's MEV network of validators commands a significant 41% of the network-stake weight (163 million SOL TVL).
3/ The recent introduction of the JTO governance token formalizes governance, placing decision-making power firmly in the hands of the widespread Jito community. This move recognizes the vital role the community plays in driving Jito's growth and success (and of for bootstrapping their network, of course)
4/ Of course, JTO token holders now have the authority to shape the future of the Jito Network. This includes setting fees for the JitoSOL stake pool, adjusting delegation strategies via StakeNet program parameters, overseeing the JTO treasury, and contributing to ongoing protocol and product development.
5/ The Jito Foundation emerges as a key orchestrator, aligning its mission with that of the Jito Network. Operating as the backbone of governance decisions, the Foundation enhances the network's power by transferring governance from DAO to off-chain infrastructure and strategic contributors.
6/ A strategic allocation of JTO tokens includes a 10% airdrop, 24.3% to Realms DAO controlled directly by token holders, and 25% allocated to the Jito Foundation.
7/ The Jito Foundation, under the leadership of independent Directors Matt Shaw and Glenn Kennedy, ensure transparent governance. Token holders retain in ultimate control, with the ability to remove foundation directors if voted.
8/ Operating under a comprehensive framework, including a Constitution, Bylaws, and Articles of Association and Memorandum of Association, the Jito Foundation establishes clear guidelines for its governance. Links to these governance documents will be shared soon, reinforcing transparency and accountability.
9/ Will it Last? SOL’s recent performance has been a surprise to everyone, and to be honest, people still don’t know why. There are a number of theories going around regarding SOL’s recent gains, some more sinister than others…But JTO’s success is owed greatly to the recent interest in SOL, of which we know is not based on fundamentals. It is tough to look at JTO as a long term play, because if SOL’s gains are pure hype, then JTO’s hype is a hype train riding a hype train. And in case you were wondering… hype trains often run out of fuel…quickly…. (or maybe this is just the FOMO talking 🤷 )
