Blockchain Crypto

JTO Tokens worth thousands of dollars are being received by even part-time Jito airdroppers.

The popular token airdrops into the recently revived Solana ecosystem continued on Thursday with the release of the JTO token by Jito, a Solana-based cryptocurrency staking project.

On a number of decentralised exchanges based in Solana, the new asset started trading at a price of $1.20 and gradually increased in value towards $2. On the perpetual futures trading platform Aevo, the debut price beat prelaunch estimates from futures traders, who estimated that each token would be worth about $1.5. Additionally, Coinbase and Binance intend to list it.

Jito’s treasury and fee rates are subject to some degree of control by the holders of JTO, a governance token. Airdrops, which begin at 4,941 tokens and increase in value based on how much a user uses the protocol’s “liquid staking token” (LST), jitoSOL, are being given out as rewards to previous users.

For Solana users who wish to trade and borrow against the SOL tokens they have locked up with validators, Jito is the second-largest LST protocol. Its principal asset, JitoSOL, functions essentially as a depository receipt for staked SOL. It makes extra money from Jito’s MEV-style blockspace auctioning method in addition to yield from the Solana network’s staking procedures.

The introduction of the token coincides with the Solana ecosystem’s sharp price and popularity recovery. The year-to-date increase in Solana’s SOL is 542%, with the majority of the price increase occurring since mid-October. With token airdrops, several on-chain protocols are attempting to capitalise on these advantageous circumstances in an effort to increase interest in their own products.

Solana’s growth is also being aided by all those airdrops, Jito Labs CTO Zano Shermani stated on Twitter on Thursday. The new wave of projects, he claimed, had learned from those who came before them, releasing assets with “pretty bad tokenomics” in the middle to late 2021, during Solana’s previous bull market.

Airdroppers receive just 10% of JTO’s total supply; interestingly, they have an 18-month window within which to retrieve their loot. Unallocated tokens will be placed in a treasury run by JTO holders, who oversee Jito’s decentralised autonomous organisation (DAO).

The remaining token supply is reserved for core contributors and investors of Jito, as well as for initiatives to strengthen the Jito ecosystem. On Thursday, as more airdrop recipients claim their rewards and have the option to hold or sell, the price is predicted to be extremely volatile.

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