JITO Shines as Proposal to Use 100% of JTX Revenue for Buybacks Debuts

JTO, the native token of Jito Network, a liquid staking protocol on Solana, has surged around 9% after the Jito Foundation introduced JIP-38. This proposal reinforces the network’s commitment to a token-centric model.

The recent announcement has fueled bullish sentiment, with many investors betting that Jito could replicate the success of Hyperliquid (HYPE) by linking protocol revenue directly to token value.

Jito Proposes Revenue-Backed Value for JTO

The proposal stated that nearly all revenue generated across the Jito ecosystem will flow to the decentralized autonomous organization (DAO), making JTO the primary asset that captures the network’s economic value.

The only exception is 20% of platform fees generated from Jito’s on-chain trading platform, JTX. The funds will be reinvested into the development and expansion of the JTX trading platform. The DAO will receive the remaining 80% of JTX fees. There, token holders will determine how the funds are deployed through governance.

According to the recent update, the standout highlight of JIP-38 is the commitment to allocate 100% of the DAO’s share of JTX revenue in buying back JTO tokens from the open market and permanently burning them.

At least, for one year through the fourth quarter of next year, the buyback and burn program will remain in place. This move will significantly reduce the token’s circulating supply while still creating a direct link between platform activity and the token’s value.

Can JTO Follow Hyperliquid’s Success?

The recent proposal has drawn comparisons with Hyperliquid. The DEX has become one of crypto’s biggest revenue generators. The platform is currently generating more than $1 million in daily protocol revenue. This places its annualized revenue in the hundreds of millions of dollars.

This impressive cash flow can be attributed to a major driver behind HYPE’s strong market performance. This proves that sustainable protocol earnings can significantly boost investor confidence.

Although JTX is still in its early stages and is unlikely to match Hyperliquid’s revenue anytime soon, it appears that modest but consistent trading revenue could have a meaningful impact on JTO if buybacks continue as proposed.

Meanwhile, JTO went up nearly 9% to $0.675 following the news. At the time of writing, however, the token has rebalanced at $0.63.

Beyond the buyback commitment, JIP-38 reinforces that JTO holders retain full economic governance over the network’s revenue streams. Token holders will decide whether future revenue should be directed toward additional value accrual, ecosystem expansion, or other growth initiatives.

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