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What Is Jito (JTO) And Should It Be in Your Crypto Portfolio?

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Key Takeaways

  • Jito (JTO) is a protocol on the Solana network for liquid staking and maximizing extractable value (MEV).
  • JTO is the Jito Network’s governance token. Holders can vote on proposals that affect the network’s future, such as fees, how the treasury is managed, and how staking rewards are distributed.

What Is Jito (JTO)?

Jito (JTO) is a crypto project on the Solana blockchain that focuses on maximizing extractable value (MEV) and simplifying participation through liquid staking.

The project aims to improve the decentralization of the Solana network. By enabling more users to participate in staking, Jito helps distribute voting rights and decision-making power more evenly across the network.

How Does Jito (JTO) Work?

Jito (JTO) functions in a way that benefits both Solana users and the Solana network itself. Here’s a breakdown of its functionalities:

For Users

Users can deposit their SOL tokens into Jito’s stake pool. This locks their SOL to contribute to the security of the Solana network through validation.

In return for staking, users receive Jito Staked SOL (JitoSOL), a liquid version of their staked SOL. JitoSOL represents their stake but exists as a tradable token.

Unlike regular staked SOL, JitoSOL can be used for various DeFi purposes, such as lending, providing liquidity, and earning additional yields on staked assets.

For The Solana Network

Jito’s software optimizes the performance of the Solana network. It helps capture MEV (Maximal Extractable Value) rewards generated by the network, which can then be distributed to stakeholders. By encouraging users to stake their SOL, Jito contributes to a more decentralized Solana network by spreading the stake across various validators.

Jito (JTO) Token And Tokenomics

Tokenomics

JTO is the governance token of the Jito Network. Here’s a breakdown of what JTO is used for:

  • Setting and adjusting fees for the JitoSOL stake pool
  • Deciding delegation strategies for StakeNet, another protocol by Jito
  • Influencing the development and improvement of Jito’s products
  • Managing the Jito DAO treasury and fees generated by JitoSOL

Token Details

Total Supply 1,000,000,000 JTO

Circulating Supply 117,197,247 JTO

Current Price $3.45

Market Capitalization $404,151,442

This information is current as of March 19th, 2024, and the token’s price, market value, and available supply may fluctuate.

Distribution

  • Community & Ecosystem (59.3%)
  • Community Growth (34.3%)
  • Ecosystem Development (25%) 
  • Airdrop (10%) 100 million JTO tokens were airdropped to early adopters in December 2023
  • Core Contributors (24.5%)
  • Investors (16.2%)

Out of the 10% airdropped:

  • 80% to JitoSOL users (holding at least 100 points before November 25, 2023)
  • 15% to Jito-Solana validators
  • 5% to Jito MEV searchers

Where Can I Buy Jito (JTO)?

  • Binance Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
  • Bybit This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
  • Coinbase Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.

Is Jito (JTO) A Good Investment?

Whether Jito (JTO) is a good investment depends heavily on your investment goals and risk tolerance. Here’s a quick overview:

Pros:

  • Solana Ecosystem Contribution – Jito is built on the Solana blockchain, which is known for its speed and scalability. This could position Jito well for growth within the Solana ecosystem.
  • Governance – JTO token holders have a say in the future of the Jito network through its Decentralized Autonomous Organization (DAO) structure.
  • Liquidity Staking Rewards – JTO offers staking opportunities, allowing users to earn rewards by locking up their tokens.
  • Potential Airdrops – Jito has a history of rewarding users with airdrops of JTO tokens, which can be a nice bonus for early adopters.

Cons:

  • New Project, Limited Track Record – Jito is a new project whose long-term viability has yet to be proven.
  • Competition – Jito faces competition from other DeFi projects vying for users and market share.
  • Security Risks – Like any other DeFi project, the JTO network could pose a risk for hacks or exploits.

Final Thoughts

While Jito (JTO) is a new project, its focus on a growing blockchain and its community-driven governance structure makes it one to watch for the future of DeFi on Solana. Remember, any investment carries risk, so do further research before making decisions.

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