A Deep Dive into Composition, Usage Patterns, and Market Dynamics
By DUNSIN OYEYEMI
In the world of high-frequency, low-latency crypto trading, Jito network has changed how participants on the Solana blockchain interact with blockspace, particularly through the use of tips..
Jito tips, a decentralized, market-based solution enabling users to pay for block space and validator attention.
This report explores how Jito tips are shaping behavior across Telegram bots, DEXs, and oracles, and how they’re rapidly becoming essential in a fast-evolving Solana DeFi landscape.
Who’s Tipping and Why?
I found that the current breakdown of Jito tips reveals the following distribution:
70% from Decentralized Exchanges (DEXs): Basically, when users initiate a swap, especially for less liquid pairs or in highly volatile periods, they are encouraged to add a tip. Which improves their transaction speed and success rate, protecting them from price impact (slippage) or swap failures.
Traders on platforms like Jupiter Aggregator, Orca, and Raydium contribute significantly to Jito tip usage.
20% from Telegram Bots: Telegram trading bots like Banana Gun, BONKBot, and other similar tools have expanded in popularity. These bots automate token buying and selling for users directly through Telegram interfaces. Because bot users often compete to buy into trending tokens quickly, they use Jito tips to ensure their transactions are amongst the first to be confirmed , particularly during volatile token launches or airdrops.
10% from Oracle updates & others: Infrastructure services like Pyth Network and other oracle providers sometimes tip to ensure timely data updates to the blockchain. In certain time-sensitive updates, tipping can guarantee that new information (like asset prices) is included in the next block.
This category is smaller compared to bots and DEX traders but critical for network functionality.