Jito (JTO) is a cryptocurrency that was launched in 2023 and operates on the Solana platform. It is a significant contributor to the Solana ecosystem, primarily through its JitoSOL liquid staking pool and a collection of MEV (Maximal Extractable Value) products. The Jito Network allows users to exchange their SOL (Solana's native cryptocurrency) for JitoSOL, which enables them to maintain SOL's liquidity and DeFi (Decentralized Finance) opportunities while earning yield from staking.
By redistributing profits from MEV, Jito alleviates its negative impacts, offering a unique proposition in the DeFi landscape. Users stake SOL tokens in exchange for JitoSOL, a liquid derivative, which is then used by MEV-enabled validators to generate profits from various strategies like transaction re-ordering and arbitrage. This mechanism not only offers stakers higher yield potential but also enables liquidity and active participation in on-chain governance for SOL holders.
Jito Labs, the organization behind Jito, was founded in 2021 and secured Series A funding in August 2022 from several crypto-venture capital firms, including Multicoin Capital and Framework Ventures. Furthermore, Jito (JTO) has garnered attention from major cryptocurrency exchanges like Binance, which announced to list Jito (JTO) as a governance token on its platform, indicating its growing prominence within the crypto sphere.