Key Takeaways
Jito’s new tokenomics update was supposed to set the world on fire. Spoiler: It didn’t.
Ah, the joys of cryptocurrency. Just when you think a project is back on track, it trips over its own feet. Solana’s [SOL]-based liquid staking protocol, Jito [JTO], decided to shake things up with a “revamped” tokenomics plan for its governance token. But did it work? Spoiler alert: not really.
In their attempt to “turn things around,” Jito announced that between August 22nd and September 1st, they bought back $1 million worth of JTO. And how did the market respond? Well, let’s just say the token wasn’t exactly screaming with excitement.
Jito, ever the optimist, told us:
“The CSD will continue using TWAP buybacks near term while developing additional mechanisms, such as an auction system, to automate $JTO value accrual.”
Translation: “We’re trying everything, but no promises.”
Oh, and in case you were wondering, the Jito DAO is getting 6% of all Jito Block Engine fees. So, basically, the more tokens they accumulate, the less there is for you. How sweet!
“The Jito Foundation is committed to ensuring that protocol fees accrue directly to $JTO token holders as optimally as possible.”
Market remains… well, indifferent
Despite all the fireworks and flashing lights, the market just didn’t care. Oh sure, the Weighted Sentiment improved slightly, but it was still mostly red. Kind of like a lukewarm cup of coffee: not quite terrible, but definitely not what you ordered.
This lack of enthusiasm means traders are still holding their breath, waiting for something… anything to give them a reason to buy in. But it’s been like this for a while now.
To make matters worse, bearish sentiment has held on tight since July, with JTO’s Open Interest (OI) dropping from over $86 million to $51 million in recent weeks. That’s a *lot* of cash just deciding to pack up and leave.
In other words, no one is exactly rushing to buy JTO, no matter how many buybacks they do. And speaking of buybacks… remember that August 22nd announcement about the first JitoSOL ETF from VanEck? Yeah, it barely moved the needle-just a 7% bump before the whole thing tanked.
Jito’s team, ever the hustlers, have been courting regulators for months, seeking clarity on liquid staking tokens (LST). But despite all their efforts, the token is still stuck in neutral. Since last November, JTO has plummeted 58%, dropping from $4.3 to a dismal $1.8. Ouch.
So, the big question remains: Can these shiny new tokenomics work their magic and turn things around? Well, if the broader market decides to join the party, maybe. If not, Jito might want to reconsider its strategy.
In the meantime, JTO is likely to keep bouncing between $1.6 and $2.2. So, don’t get your hopes up too high unless it breaks through $2.2, which, spoiler alert, doesn’t seem all that likely.
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2025-09-06 08:13