Solana MEV developer Jito launching governance token

Jito Foundation, the organization supporting a Solana SOL -4.86% -based liquid staking protocol, is launching a governance token that will be used to help manage the Jito Network.

Jito Labs builds infrastructure designed to mitigate negative impacts of maximum extractable value on Solana. By launching the token, Jito Foundation seeks to empower "community members to have a direct impact on the decision-making and direction of the Jito Network," the organization said in a statement.

Last month, Solana Foundation said nearly a third of stake is running through the Jito Labs client. In Monday's announcement, Jito Foundation said the Jito MEV network of validators is now being "utilized by over 40% of Solana network’s stake weight."

A total of 1 billion JTO tokens have been created in an effort to organize how the network is managed, including setting fees for the JitoSOL staking pool and supervising revenue and the DAO treasury. Initially there will be 115 million JTO tokens circulating. About 34% of tokens are earmarked for community growth, with 25% for ecosystem development, 24.5% for core contributors and 16% for investors.

Airdropping for community members

The foundation also said that 10% of the tokens will be "airdropped to Jito community members as a recognition of their contribution to bootstrapping the network and to ensure they can participate in governance from day one." Community members should stay alert for updates regarding the airdrop, the foundation said.

Jito Labs investors include Solana Ventures and Solana Labs co-founder Anatoly Yakovenko. Last year, the company raised $10 million in a Series A funding round.