Key Takeaways:
- Jito Network proposes JIP-38 to redirect 80% of JTX Trade fees to buybacks.
- The buyback mechanism would create deflationary pressure on JTO's circulating supply.
- A simple majority vote is required for the proposal to pass.
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Jito proposes JIP-38 to direct 80% of JTX fees to JTO buybacks
Jito Network, the Solana-based liquid staking and MEV protocol, on Monday unveiled JIP-38, a governance proposal that would redirect 80% of all fees generated by JTX Trade — its recently launched on-chain trading terminal — toward automated buybacks and burns of the JTO token.
"JIP-38 aligns protocol revenue with tokenholder value by creating a transparent, on-chain mechanism for fee distribution," the proposal states. "If passed, 80% of JTX Trade fees will be routed to a smart contract that executes market buybacks and burns on a recurring basis."
JTX Trade, which launched in early 2026, processes spot and perpetual swaps directly on Solana, competing with platforms like Jupiter and Raydium. The remaining 20% of fees would be allocated to the Jito DAO treasury for ongoing protocol development and operational expenses, according to the proposal published on the Jito governance forum.
The proposal represents a structural shift in how Jito distributes value from its growing fee base. If enacted, JIP-38 would create sustained deflationary pressure on JTO's circulating supply — a model that mirrors buyback programs seen in traditional equity markets but executed entirely on-chain via smart contracts. The move could also pressure competing Solana DeFi protocols to adopt similar tokenomics frameworks to retain capital and user attention.
The Jito DAO will vote on JIP-38 over the coming weeks. A simple majority is required for passage. If approved, the buyback mechanism would take effect immediately following the on-chain execution of the governance vote.
This article is for informational purposes only and does not constitute investment advice.
