Jito, a key protocol in the Solana ecosystem, has demonstrated significant growth, positioning itself as a driving force behind the blockchain’s success, according to Kairos Research. Metrics from the past year reveal substantial developments across Jito’s staking solutions, transaction prioritization mechanisms, and validator incentives, setting the stage for further expansion in 2025.

Jito’s liquid staking token (LST), JitoSOL, experienced a 125% increase in total value locked (TVL) in SOL terms, with an average daily growth rate of 1.65%. Of the 14.3 million JitoSOL staked, approximately 23% was actively utilized in decentralized finance (DeFi) markets, such as lending platforms and decentralized exchanges. 

One of the most notable areas of growth for Jito was the increase in “Jito Tips.” These priority fees, paid by users or applications to validators for prioritizing transactions, achieved a compound monthly growth rate of 19.6% in SOL terms and 32.7% in USD terms during 2024. 

The introduction of TipRouter, a decentralized mechanism for distributing Jito Tips, is poised to revolutionize the distribution of these priority fees. Currently distributed through a permissioned system, TipRouter will function as an NCN, akin to an Actively Validated Service on EigenLayer. 

The system derives economic security from restaked JitoSOL and JTO assets via Jito’s (Re)Staking platform. In return, restaked assets will receive a portion of the tips they help secure.

Following the implementation of Jito Improvement Proposals (JIPs), the tips will be allocated among Solana validators and stakers, the Jito DAO treasury, and restakers of JitoSOL and JTO.

Early estimates, based on 30-, 60-, and 90-day moving averages of Solana’s price and tip activity, project substantial annual rewards for all participants, with the DAO treasury expected to receive tens of millions of dollars and restakers benefiting proportionally.

In the final quarter of 2024, daily tips exceeding $2.5 million became a frequent occurrence, peaking at $14.7 million on November 17. These tips also contributed significantly to staking rewards, with JitoSOL’s MEV rewards comprising 10% or more of weekly staking returns for half the year and reaching an average of 11.79%.

Jito’s dominant client market share increased from 48% to 93% throughout 2024, further lifting staking reward rates across the Solana network.