{"id":"jito","title":"Jito","content":"**Jito** offers a [liquid staking](https://iq.wiki/wiki/liquid-staking) service for [Solana](https://iq.wiki/wiki/solana) that allocates maximum extractable value (MEV) rewards to participants. Users can [stake](https://iq.wiki/wiki/staking) their [SOL](https://iq.wiki/wiki/solana-sol) through the Jito Stake Pool and receive [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) tokens in return. These tokens offer [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) while allowing holders to earn [staking](https://iq.wiki/wiki/staking) and MEV rewards. [Lucas Bruder](https://iq.wiki/wiki/lucas-bruder) and [Zano Sherwani](https://iq.wiki/wiki/zano-sherwani) are Jito's co-founders. [\\[1\\]](#cite-id-fllfj8pf366)\n\n$$widget0 [YOUTUBE@VID](DjpB38KMq7Q)$$\n\n## Overview\n\nJito provides a [liquid staking](https://iq.wiki/wiki/liquid-staking) service for [Solana](https://iq.wiki/wiki/solana), allowing users to [stake](https://iq.wiki/wiki/staking) their tokens and receive [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) tokens in return. [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) offers [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) while earning both [staking](https://iq.wiki/wiki/staking) and MEV (maximum extractable value) rewards. This service stands out by providing additional rewards from MEV transactions and only working with [validators](https://iq.wiki/wiki/validator) that use software to enhance network performance and reduce congestion. [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) accumulates value from these rewards and supports [DeFi](https://iq.wiki/wiki/defi) integrations, enabling users to earn yield from [validators](https://iq.wiki/wiki/validator) and lending or farming protocols. Jito aims to maximize yield for [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) holders and improve the [Solana](https://iq.wiki/wiki/solana) network. [\\[1\\]](#cite-id-fllfj8pf366)\n\n### Jito Foundation\n\nThe Jito [Foundation](https://iq.wiki/wiki/foundation), established in the Cayman Islands, supports the Jito Network's development and operates under its own Bylaws and governance documents. Tokenholders have decision-making power regarding the [Foundation](https://iq.wiki/wiki/foundation) and the network. Governance of the [Foundation](https://iq.wiki/wiki/foundation) is conducted through Tokenholder Votes, including the submission and voting on Jito Improvement Proposals (JIPs). [\\[2\\]](#cite-id-2hd3vnemjb6)\n\n## Features\n\n### MEV Solution\n\nMaximum Extractable Value (MEV) refers to the profit that can be gained from the specific order of transaction execution. For example, if a large swap on Orca alters a pool’s price, traders might exploit the price discrepancy for [arbitrage](https://iq.wiki/wiki/arbitrage), which is considered MEV. Similarly, [liquidation](https://iq.wiki/wiki/liquidation) bots compete to process liquidations when a price threshold is met. MEV is prevalent in traditional finance and everyday scenarios, such as fans rushing to buy concert tickets to avoid resale markups. [\\[3\\]](#cite-id-rop405xo25a)\n\nThe Jito [Foundation](https://iq.wiki/wiki/foundation) aims to optimize the extraction and distribution of MEV to enhance [Solana's](https://iq.wiki/wiki/solana) security and decentralization. [Solana](https://iq.wiki/wiki/solana) has faced network congestion from traders attempting to capture MEV by resending transactions multiple times, similar to users repeatedly refreshing a ticket sales website that is under heavy load. To address this, Jito introduced a solution involving an auction system where traders bid for transaction sequences they believe are profitable. A [block](https://iq.wiki/wiki/block) engine selects the highest-value combination of transactions, and the proceeds from these auctions are shared with stakers through [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol). This mechanism reduces the incentive for spam while boosting rewards for stakers, and [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) benefits from these MEV rewards without being exposed to the risks of MEV trading. [\\[3\\]](#cite-id-rop405xo25a)\n\n### Stake Delegation\n\nThe Jito Foundation's [Liquid Staking](https://iq.wiki/wiki/liquid-staking) aims to enhance [Solana's](https://iq.wiki/wiki/solana) decentralization and performance. Validators meeting specific criteria can qualify for [stake](https://iq.wiki/wiki/staking) delegation. The goals are to support high-quality network operators, improve decentralization by avoiding the superminority, provide high yields to [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) holders, and promote the adoption of the Jito-[Solana](https://iq.wiki/wiki/solana) [validator](https://iq.wiki/wiki/validator) client, which helps increase yields and reduce spam. [\\[4\\]](#cite-id-qag8r6waf7j)\n\n[Validators](https://iq.wiki/wiki/validator) must meet certain requirements, including running an MEV-enabled client with a commission rate of 10% or less, not being part of the superminority, and not using unsafe consensus modifications. They are ranked based on their performance, measured by average epoch [credits](https://iq.wiki/wiki/credits) over the last 20 epochs and adjusted for commission rates. [\\[4\\]](#cite-id-qag8r6waf7j)\n\nDelegation is given to the top 200 performing [validators](https://iq.wiki/wiki/validator). If fewer than 200 meet the criteria, the delegation is distributed among those who do. Pool churn is limited to 7.5% of the total value locked per 10-epoch cycle to minimize the impact on [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) yields. [Validators](https://iq.wiki/wiki/validator) may be immediately excluded for zero epoch [credits](https://iq.wiki/wiki/credits), exceeding the 10% commission rate, or engaging in malicious behavior. Performance rebalancing involves unstaking up to 7.5% of the pool from lower-scoring [validators](https://iq.wiki/wiki/validator) and reallocating it to higher-performing ones. [\\[4\\]](#cite-id-qag8r6waf7j)\n\n### StakeNet\n\nStakeNet consists of keepers and on-chain programs with two main components. The [Validator](https://iq.wiki/wiki/validator) History Program maintains a record of up to three years (512 epochs) of [validator](https://iq.wiki/wiki/validator) activity, offering a transparent and cryptographically verified history. This allows users and on-chain programs to assess [validator](https://iq.wiki/wiki/validator) performance. [\\[5\\]](#cite-id-hpgvgbx6mvb)\n\nThe Steward Program uses this historical data and other on-chain information to compute scores and determine stake delegation amounts for each [validator](https://iq.wiki/wiki/validator). Keepers manage a state machine to ensure stakes are allocated to the highest-performing [validators](https://iq.wiki/wiki/validator). This system operates autonomously and facilitates a transparent, efficient [stake](https://iq.wiki/wiki/staking) delegation process based on validated historical data. The operations of the [stake](https://iq.wiki/wiki/staking) pool are [permissionless](https://iq.wiki/wiki/permissionless) and accessible to anyone with a small amount of [SOL](https://iq.wiki/wiki/solana-sol) for transaction execution. [\\[5\\]](#cite-id-hpgvgbx6mvb)\n\n$$widget0 [YOUTUBE@VID](3Q7_orEJ1Gg)$$\n\n#### Validator Scoring\n\nSince September 6, 2023, StakeNet has used on-chain data for [validator](https://iq.wiki/wiki/validator) scoring, which includes: [\\[5\\]](#cite-id-hpgvgbx6mvb)\n\n* **Vote Credits**: Measures a [validator's](https://iq.wiki/wiki/validator) participation and accuracy in consensus.\n* **Commission**: Reflects the fees charged by [validators](https://iq.wiki/wiki/validator), affecting stakeholder rewards.\n* **MEV Commission**: Additional earnings from efficient Maximum Extractable Value (MEV) extraction.\n* **Validator Version and Client Type**: Provides insights into software reliability and operational status.\n* **Total Stake and Stake Rank**: Shows each validator's total stake and ranking to identify those above the superminority line.\n\nData sources include on-chain accounts, which offer proof of authenticity, and gossip data, which provides real-time updates. StakeNet plans to expand the data set to include additional metrics such as geographical location and [validator](https://iq.wiki/wiki/validator) skip rates in the future. [\\[5\\]](#cite-id-hpgvgbx6mvb)\n\n![aAIUUSR8McYKTmXdQKDpAOkYvRvkLWn3DlHLqp45-WFSoibXcGanrQ\\_p3CxviJsLvYEmdRwypecg\\_5txiD\\_Wzi7iYyqOKkc6hsg4lw15WnOUUiVN9sxUyjMyGlGOsEWyGqMM49RrwqYTFhws88--EHc-1.png](https://ipfs.everipedia.org/ipfs/QmVFCegWHmxgYyBLJJcMUkMzjFaKk2qFL17rrTzNzZ4eQh)\n\n#### Stake Movement\n\nTraditionally, [stake](https://iq.wiki/wiki/staking) pool management relies on a hot [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) controlled by the managing team, posing risks if compromised, as it could move all [stakes](https://iq.wiki/wiki/staking) to a single [validator](https://iq.wiki/wiki/validator). To address this, StakeNet has shifted authority to an on-chain steward program. The hot [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) authority, or \"Staker,\" is now managed by a Program Derived Address (PDA) controlled by the Steward. This change ensures that only stake movements calculated by the on-chain scoring algorithm can occur, enhancing security by preventing external manipulation. The Steward Program automates and aligns stake delegation with network health, rewarding high-performing [validators](https://iq.wiki/wiki/validator) and penalizing underperformers. [\\[5\\]](#cite-id-hpgvgbx6mvb)\n\n![eJMExP4hrJpGRCeQf1hTuIROvU7cYlKYIHUERJtkbUdsY2WBXrM3zJq-WPk9y7l1z28h3azrvpB77b3hCwF-l\\_GtH5MKtDznu82hpDJvlY7V79rnBTLMSMhw3wnCPWKzATrfOHd6tES35cTx3QeFzTg.png](https://ipfs.everipedia.org/ipfs/QmW2hZW1YhBZ93VWH8C5P6R4KQjxma5JBq6VQASAQfCK52)\n\n## JitoSOL\n\n[JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) is a [liquid staking](https://iq.wiki/wiki/liquid-staking) derivative on the [Solana](https://iq.wiki/wiki/solana) [blockchain](https://iq.wiki/wiki/blockchain) that allows users to exchange their [SOL](https://iq.wiki/wiki/solana-sol) for [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol), maintaining [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and [DeFi](https://iq.wiki/wiki/defi) opportunities while earning [staking](https://iq.wiki/wiki/staking) yield. It also offers rewards from maximum extractable value (MEV) extraction on [Solana](https://iq.wiki/wiki/solana). Users can trade [JitoSOL](https://iq.wiki/wiki/jito-staked-sol-jitosol) on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) like [Jupiter](https://iq.wiki/wiki/jupiter) or withdraw [SOL](https://iq.wiki/wiki/solana-sol) via Jito’s website after a 2-3 day cooldown. The token starts with a [1:1](https://iq.wiki/wiki/currency-peg) exchange rate with SOL, which appreciates as rewards are accrued. [\\[7\\]](#cite-id-zlzx98z4q8)\n\n### JitoSOL and ETFs\n\nThe Jito Foundation has advocated for the inclusion of LSTs like JitoSOL in exchange-traded funds (ETFs) as a more flexible alternative to direct [staking](https://iq.wiki/wiki/staking), especially in light of regulatory constraints around [staking](https://iq.wiki/wiki/staking) within traditional ETFs. LSTs offer benefits aligned with ETF architecture, such as collateral utility, in-kind redemption, and improved yield management. JitoSOL’s structure and classification as a non-security commodity position it as a candidate for ETF inclusion, enabling both long-term and short-term holders to gain yield exposure to Solana without operational staking complexity.  [\\[8\\]](#cite-id-1M4Tx9AqqT)\n\n## JTO Token\n\nThe JTO [governance token](https://iq.wiki/wiki/governance-tokens) enables community members to influence the decision-making and direction of the Jito Network directly. JTO has a total supply of 1B and has the following allocation: [\\[6\\]](#cite-id-8p8yn8l7uh)\n\n* **Community Growth**: 34.2%\n* **Ecosystem Development**: 25%\n* **Core Contributors**: 24.5%\n* **Investors**: 16.2%\n* **Airdrop**: 10%\n\n![Granular-pie-chart--1-.png](https://ipfs.everipedia.org/ipfs/QmbcQ7zrhcRAhpgADjDAyi1k4VhzaYbjN6SRn6tejnYUWK)\n\n## Partnerships\n\n* [Maple Finance](https://iq.wiki/wiki/maple-finance)\n* Midcurve\n* [Phantom](https://iq.wiki/wiki/phantom-wallet)\n* [Infinex](https://iq.wiki/wiki/infinex)\n* Drift\n* Mango\n* MarginFi\n* Solend\n* Orca\n* Kamino Finance\n* [Raydium](https://iq.wiki/wiki/raydium)\n* Meteora\n* Invariant","summary":"Jito is a liquid staking service for Solana, offering MEV rewards and liquidity via JitoSOL tokens, co-founded by Lucas Bruder and Zano Sherwani.","images":[{"id":"QmbW4qFJgUnmeAoPp6Du4eJ9UGrMgHmV6yXCZXyWtc4YN1","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"Decentralized 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to Jito | Jito Docs\",\"timestamp\":1722449928913},{\"id\":\"2hd3vnemjb6\",\"url\":\"https://www.jito.network/docs/governance/constitution-of-the-jito-foundation/\",\"description\":\"Consitution of Jito Foundation | Jito Docs\",\"timestamp\":1722450291380},{\"id\":\"rop405xo25a\",\"url\":\"https://www.jito.network/docs/jitosol/maximum-extractible-value/\",\"description\":\"MEV Solution | Jito Docs\",\"timestamp\":1722450323648},{\"id\":\"qag8r6waf7j\",\"url\":\"https://www.jito.network/docs/jitosol/stake-delegation/\",\"description\":\"Stake Delegation | Jito Docs\",\"timestamp\":1722450365181},{\"id\":\"hpgvgbx6mvb\",\"url\":\"https://www.jito.network/blog/a-deep-dive-into-stakenet/\",\"description\":\"Deep-Dive Into StakeNet | Jito Blog\",\"timestamp\":1722450416845},{\"id\":\"8p8yn8l7uh\",\"url\":\"https://www.jito.network/blog/announcing-jto-the-jito-governance-token/\",\"description\":\"Announcing JTO | Jito 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