Jito (JTO): Driving Solana's Growth With MEV Technology

While some crypto investors are all about speculating in crypto and carefully timing trades, others prefer the passive investments offered by systems such as Jito. This method has proven to be very popular. In the past few months, Jito has had an impressive amount of community growth. In addition to offering MEV-based staking rewards, Jito now owns its own crypto and runs its own decentralized autonomous organization (DAO). If you're interested in investing in Jito or working with their system, here's what you need to know.

Key Takeaways:

• Jito is a Solana-based DeFi platform with a liquid staking protocol that uses both staking and MEV techniques to let community members earn money in exchange for temporarily locking their crypto tokens away.

• Looking to trade Jito tokens? Bybit now offers the JTO/USDT Spot trading pair and JTOUSDT Perpetual contracts.

What Is Jito?

Jito is a Solana-based decentralized finance (DeFi) platform. Its liquid staking protocol uses both staking and maximum extractable value (MEV) techniques to let community members earn money in exchange for temporarily locking their crypto tokens.

What Is MEV?

MEV is short for maximum extractable value. It refers to consensus-achieving methods that allow miners and validators to profit off of validation. Since validators can choose the order in which they process transactions, they can optimize profitability and collect an unseen processing fee.

History of Jito

Jito Labs was first established in 2021 by Lucas Bruder, who previously worked in the robotics field and used to be an employee at Tesla. However, after becoming interested in MEV, Bruder realized there was enormous potential to create an MEV system open to the public. Initially, MEV was a niche concept primarily employed by validators, but the Jito team hoped to create a streamlined system any investor could use.

Solana Ventures and Solana Labs co-founder Anatoly Yakovenko has invested in the project. In addition to contributions from Solana Ventures and Solana Labs, other investors have also participated, and Jito has raised $10 million in funding. The success of the project has allowed it to launch the Jito Foundation, a DAO that manages both Jito Labs and other liquidity projects provided by the company.

What Does Jito Aim to Achieve?

MEV-based investing is a somewhat controversial concept in the crypto world. Some investors see it as taking advantage of traders and manipulating the system. However, proponents of MEV point out that as an ecosystem development method, it can help to identify and address inefficiencies within a network. Jito heavily focuses on this approach to MEV.

Its development team sees the MEV-based staking program as a way to support the Solana ecosystem. Jito's MEV searchers aim to identify and avoid dangerous forms of MEV while finding ways to earn money without harming other Solana blockchain users. Their end goal is to create a mutually beneficial system whereby everyone can profit from quirks in the Solana ecosystem.

How Does Jito Work?

Jito community members who own Solana can choose to link their wallets to Jito's protocol and deposit Solana tokens into their chosen pools. Jito then combines all of this currency and uses it to fund ventures such as Solana MEV farming. Each staker is given JitoSOL tokens as collateral for their Solana tokens, and they earn MEV rewards because the JitoSOL tokens accrue value in proportion to the staked Solana.

MEV staking on Jito is carefully designed to eliminate spam and avoid JitoSOL devaluation. Its MEV searchers run auctions whereby each trader bids on a transaction series that seems profitable to them. They then use a third-party block engine to run a simulation and find the most efficient order for processing a transaction. The proceeds of the auction are given to the stakers, so JitoSOL value is based on guaranteed auction amounts instead of variable MEV profits.

Features of Jito

Jito Foundation offers a variety of different features to its users.

Staking

Staking based on Solana MEV is the main service that Jito provides. Users lock their tokens, temporarily exchanging them for JitoSOL, and then Jito uses their funds to earn money through MEV. The JitoSOL accrues staking rewards while you hold it, and can also be traded. This allows you to maintain some liquidity while still staking your Solana network tokens.

Borrowing/Lending Protocol

The Jito Network also provides an efficient way of participating in borrowing and lending activities. Through Jito's DeFi services, people can lend or request JTO, JitoSOL and SOL. Lenders can earn rewards, while borrowers can temporarily receive extra funds for investing or other practices.

Liquidity Pool

Jito also works with Orca and a few other institutions to create liquidity pools. Users can choose to stake their JitoSOL or SOL in liquidity pools that help DeFi exchanges run smoothly. In exchange for participating, they earn liquidity staking rewards that are usually a little lower than MEV rewards. However, some people feel they’re more reliable.

JTO Airdrop

To celebrate the launch of its new token, Jito has decided to give millions of its tokens directly to the public. The airdrop contains 90 million tokens. Eligibility for the JTO token airdrop is based on user participation, and core contributors earn more tokens. The airdrop started on Dec 7, 2023 and runs for 18 months.

How to Claim JTO Airdrop

The network will reward JTO tokens based on the amount of JitoSOL staking rewards you hold. You can connect your wallet to determine the amount of JTO you’re eligible to receive. Once you claim your tokens on the Jito Foundation website, they're sent directly to your wallet.

Jito Road Map

Jito has already successfully launched a system that allows people to seamlessly take advantage of Solana MEV profits, and they've also released a liquid staking protocol that provides many other passive earning opportunities. According to the Solana Foundation, nearly a third of all staking on the system is running through Jito Labs.

In the upcoming months, Jito will be focusing on ecosystem development. Through its new Jito Foundation and DAO, it hopes to enhance community growth. This includes plans to release more JTO tokens, as well as a variety of rewards programs to encourage Jito community members to get involved. Though Jito hasn't released an official road map, it has hinted at plans to create other potential products that can run on the Solana blockchain.

JTO Tokenomics

JTO is a governance token that allows community members to participate in the Jito DAO. Its total supply of 1 billion tokens will be distributed as follows:

• Ecosystem development: 25%

• Core contributors: 24.5%

• Community growth: 24.3%

• Investors: 16.2%

• Airdrop: 10%

JTO Price Prediction

Since its launch in December 2023, JTO has already gone through a lot of changes. The coin experienced an all-time low of $1.47 followed by an all-time high of $6.01, and its current price sits at around $3.08.

The short-term outlook for JTO is fairly positive. CoinCodex data indicates that the crypto's price may reach as high as $8.74 by 2025. However, the long-term outlook is a little more grim as JTO is likely to undergo a lot of sudden drops in price, and may spend the next few years barely increasing in value. Ultimately, it's likely to experience significant growth in the future if the Jito Foundation does something impressive.

Where to Buy JTO

Jito has only released JTO on a few exchanges so far. If you're looking to purchase this new crypto, consider buying it through Bybit. To get started with trading on Bybit, you’ll first need to sign up for a Bybit account and fund it with cryptocurrency. Then, navigate to the JTO/USDT Spot trading page. Other than being available as a Spot trading pair, JTO is also available on Bybit in the form of JTOUSDT Perpetual contracts.

Is JTO A Good Investment?

Investors who like trending cryptocurrencies with a lot of volatility might find JTO appealing. Not only is it trending right now, but its prices seem likely to hold for at least the next few months. The coin does have some value outside of price speculation, and it's backed by a fairly reputable crypto project. However, with many blockchains making moves to halt MEV actions, some crypto experts worry that Jito Labs might not have a lot of staying power. If the system doesn't diversify, JTO and its other tokens may eventually end up losing value. Therefore, it's important to remain cautious and hedge your bets if you plan on working with JTO.

Closing Thoughts

Jito's ability to provide MEV-based staking for the Solana network makes it a unique and exciting project. Even those who don't want to use Jito as a way of passively earning crypto may find it rewarding to invest in the project. With the release of the new JTO governance token, there are plenty of ways for investors to profit from the company.

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