Jito Explained: JitoSOL, Bundles & Restaking

What is Jito?

Jito is the largest liquid staking protocol on Solana, holding over 14.3 million SOL in Total Value Locked (TVL) and capturing approximately 42.9% of the market share, cementing its dominance in the staking ecosystem.

The protocol combines staking rewards with Maximum Extractable Value (MEV) rewards, allowing users to stake SOL and receive JitoSOL, a liquid token that maintains full liquidity while automatically accruing rewards. Jito delegates SOL to high-performance validators running its proprietary MEV-enabled software, ensuring optimal yield and superior network efficiency.

Through an advanced MEV auction system, Jito eliminates the spam that often congests Solana’s network by prioritizing transaction sequencing. This approach redistributes MEV profits directly to validators and stakers, increasing rewards without compromising network stability. 

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JitoSOL APY Explained

JitoSOL offers a competitive and variable APY, currently around 11.23%, significantly higher than Solana’s standard staking rate. This elevated yield stems from Jito’s integration of staking rewards and Maximum Extractable Value (MEV) profits.

The APY is not fixed but depends on several factors, including network activity, MEV auction outcomes, and the performance of delegated validators. Here’s how JitoSOL achieves its elevated APY:

• Staking Rewards: Like standard SOL staking, JitoSOL holders earn rewards from Solana's native token issuance for participating in network security.
• MEV Rewards: Jito runs a specialized auction system where validators prioritize high-value transactions, generating additional revenue for stakers.
• Efficient Validator Selection: Jito delegates SOL to high-performing validators using its MEV-enabled software, optimizing yield distribution.
• Compound Benefits: JitoSOL tokens automatically accrue staking and MEV rewards, increasing their value over time without user intervention.

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Jito Restaking

Jito Restaking allows users to maximize their staked assets by securing additional networks or protocols while maintaining liquidity. Similar to EigenLayer on Ethereum, Jito’s restaking model enhances capital efficiency by enabling staked tokens like JitoSOL to earn rewards across multiple ecosystems simultaneously.

Restaking works through specialized vaults that issue Vault Receipt Tokens (VRTs), representing the user’s deposits. These VRTs maintain full liquidity, enabling users to participate in Solana’s DeFi ecosystem while accruing additional rewards. This dynamic not only amplifies yields but also supports decentralization and security across Solana-based applications.

By leveraging restaking, Jito enables a new layer of utility for staked assets, allowing users to optimize rewards without compromising liquidity or flexibility.

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What are Jito Bundles?

Jito Bundles are a specialized Solana transaction feature enabling atomic and sequential execution of up to five transactions within the same block. This guarantees that all bundled transactions either succeed or fail together, making them indispensable for high-precision operations like MEV arbitrage, liquidations, and DeFi batching. 

Bundles are prioritized based on user-defined tips, ensuring execution ahead of standard transactions during peak network activity.

According to the Jito Bundle Explorer, over 2 billion bundles have been processed, generating 2,900,000 SOL in tips and significantly boosting Solana’s economic efficiency.

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Best Jito Validators

Choosing the right validator is critical for stakers aiming to maximize rewards while supporting Solana’s network health. Jito-Solana’s MEV-boosted validators improve yields and reduce spam, fostering a stronger, more efficient blockchain ecosystem.

According to the Jito Mainnet Validator Dashboard, here are some top performers:

• Galaxy: 12.5M SOL staked with 0.7% commission
• Coinbase: 12.3M SOL staked with 0.7% commission
• Helius: 12.4M SOL staked with 0.6% commission
• Binance: 10.2M SOL staked with 3.5% commission
• Ledger: 9.0M SOL staked with 6.1% commission

These validators balance performance, low fees, and MEV revenue sharing, making them excellent choices for JitoSOL stakers. 

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Jito Tokenomics

The Jito Governance Token (JTO) powers decentralized decision-making within the Jito Network, enabling token holders to influence key aspects such as fees, validator delegation, and treasury management. JTO has a total supply of 1 billion tokens that will be distributed over time to support protocol growth.

Here’s a quick look at the JTO allocation:

• Community Growth (34.3%): Includes a 10% airdrop and 24.3% managed by the DAO to expand Jito’s utility and user base.
• Ecosystem Development (25%): Funds projects like StakeNet and initiatives to enhance Solana’s staking economy.
• Core Contributors (24.5%): Reserved for founders and contributors, vesting over three years with a one-year cliff.
• Investors (16.2%): Allocated to early supporters, also with a three-year vesting schedule.

JTO holders shape the network’s future by participating in governance decisions that align with Jito’s mission to optimize Solana’s staking ecosystem and support decentralized innovation.

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Bottom Line

Jito is redefining Solana’s staking ecosystem, combining features rivaling Ethereum’s Lido, Eigenlayer, and Flashbots into one all-encompassing platform. With JitoSOL, MEV integration, restaking, and governance via JTO, it delivers unmatched yield optimization and network efficiency. 

Jito’s dominance positions it as the go-to protocol for maximizing rewards while advancing Solana’s decentralization and scalability.