Solana Gito Pool Exceeds $100M in Monthly Tips: Kairos Study
Solana staking pool Gito closed monthly earnings from priority payments and more than $100 million in tips in November and December, according to Kairos Research, a cryptocurrency researcher, on December 26.
In the year By 2024, Gito validators have increased tip revenues by an average of 32% per month, Kairos said. Monthly revenue rose to around $210 million in November.
The growing number of Gito tips reflects the growing popularity of Solana's network. Verifiers also mark their earnings by prioritizing certain transactions over others, a practice known as Maximum Extractable Value (MEV).
Source: Kairos Research
RELATED: DeFi TVL Nears 2021 Highs on Liquidity Reset, Bitcoin L2s
MEV bonus
Users pay tips to validators to prioritize transactions during block construction and to order certain transactions ahead of other blocks. This helps users ensure that transactions are completed correctly, but also contributes to higher transaction costs.
In the year In 2024, Solana validators earned more than Ethereum for the first time. That, along with transaction fees on the Solana network, is set to nearly triple from 60,000 Solana (SOL) in January to 150,000 in October, according to Dunn Analytics data.
As of December 26, more than 93% of Solana validators use Gito software to maximize block-building revenue, according to Gito developer Gito Labs.
Source: Dune Analytics
Reestablishment of SOL
Jito, which also issued the Liquidity Retention Token (LRT) JitoSOL, has emerged as Solana's most popular decentralized finance (DeFi) protocol, with a total market cap of around $2.75 billion locked in, according to Defilama.
Rescheduling involves taking an already staked token – escrow with a validator in exchange for a reward – and using other protocols to secure it at the same time. LRTs represent a salable claim on the stock of repossessed assets.
In October, JTO holders of the JTO Management Token voted to distribute a portion of the tip proceeds to the JTOSOL restacker. According to Kairos, Jito plans to direct 0.15% of tip revenue to JitoSOL resetters. Authenticators continue to pocket most of the revenue from tips.
As of Dec. 26, Gito yields approximately 8.6% to Gitosol recyclers. Ethereum continues to dominate with the resurgence of television network L, with top re-protocol EigenLayer commanding nearly $15 billion, Defillama reports.
Magazine: Can you trust a crypto exchange after the FTX collapse?
