Unveiled: The most profitable company in the cryptocurrency industry is actually the 'underworld'? When I saw the income, I was shocked; When I see the business, I feel overwhelmed. One of the most profitable blockchain projects on Earth, surprisingly, is no different from what "gangsters" and "mafia" do. Let's sneak in! ⬇️ Its revenue is second only to the coin issuing group Tether Cycle： Revenue of 1.05 billion US dollars in the past year Last month's income was 41 million US dollars On January 20th of this year, the daily income was 26.49 million US dollars On the second day, he earned another 21.54 million US dollars in a single day Note that this is only for fees income! This company is Jito @ jito-ulabs, a protocol that you may not have heard of, but you must have been plucked by it; A company that occupies Solana and plays the role of a mafia godfather, the entire ecosystem loves and hates it, but no one can stop it from printing money. This is a soft core science popularization article, through which you can learn: Jito's Business Model The concept and principle of MEV How to get along with MEV one ️⃣ What the hell is Jito? In Jito's official promotion, it says' Jito Labs builds high performance Solana MEV infrastructure. 'Each word is true, but it is difficult to associate with the' mafia '. In fact, Jito has built a high-performance client on Solana that allows users to speed up transactions through "bribery" by charging protection fees. How was this achieved? Don't worry, let's first break down Jito's business scope: Jito Solana client: This is an optimized Solana validator client that allows users to prioritize by paying tips Liquid Staking Liquidity Pledge: Jito provides JitoSOL as LST for Defi nesting Jito network ecosystem: including transaction bundles and order flow auctions, as well as token Jto Once Jito has figured out what he does, he can break it down and see how each business makes money. MEV division: Jito extracts a certain percentage from the MEV prompts paid by users, so the dog catcher may already know where the problem lies Management fee for staking pool: JitoSOL users' staking rewards and MEV earnings will be subject to an annualized management fee of 4% Other income Is this it? It doesn't seem like anything special, why are you making so much money? How did you make it? We need to first clarify what MEV is, as most of Jito's revenue comes from it. two ️⃣ What the hell is MEV? The full name of MEV is' Maximal Extractable Value ', which is equivalent to looking at it for nothing and doesn't understand its meaning at all. I am vulgar, oh no, to put it simply, it is the extra profit earned by "jumping the queue" or "rushing" on the blockchain. Transactions on the blockchain are not completed instantly, but first enter a 'mempool' and wait for miners or validators to package and confirm. Whoever can decide the order of transactions can benefit from it - MEV is the sum of these benefits. Imagine you are queuing up at the bank to withdraw money. Normally, it is a first come, first served policy, but if someone bribes the teller to cut in line, or if the teller secretly puts their own order at the front, this is the logic of MEV. The "teller" on the blockchain refers to miners or validators who can make money by adjusting the order of transactions. Taking the example of fighting a bulldog, let's take a look at how MEV operates in a sneaky manner throughout the entire process. Assuming you discover a new local dog "TuGou" that has just been launched and is priced at only 0.01 dollars, you want to quickly buy a product for 1000 dollars. You have been single for 20 years and placed orders quickly, but the transaction has not been confirmed yet. At this point, MEV may affect you in two ways: Frontline running A 'smart person' (possibly a trading robot) saw your buy order in the pending pool and immediately used higher 'tips' to jump in line, buying a bunch of TuGou before you and raising the price to $0.02. When your order is confirmed, you only bought half of the coins for $1000, which is a big loss. Sandwich Attack Commonly known as sandwich attack, this is a more ruthless gameplay. Someone buys TuGou at a low price before you buy it, and then immediately sells it at a high price after you confirm your purchase (pushing the price up to $0.02). They make a profit by "pinching" your trades, and their operations may even complete a buy and sell in one transaction, which you cannot escape. For ordinary players: If no one uses MEV, you may successfully buy cheap TuGou and make a small fortune. But the reality is that experts and robots use MEVs to grab or pinch orders, taking away profits, and you end up buying too expensive or selling too late. For the entire market, MEV makes the trading order "the highest bidder wins", and some people exchange money for speed, making the market more intense. Especially in the meme craze, MEV can amplify profits and also make ordinary players suffer losses. Jito is the "MEV's biggest steward" on Solana, using technology (client, bundled transactions, tips) to help users jump the queue and earn tips themselves! Do you understand? Isn't this still the 'underworld' and 'hooligans'? Everyone used to have a good deal and queue up to withdraw money, but now you're here to bribe the teller to cut in line, even forcing them to start and forcefully insert. Isn't this disgusting? How did Jito achieve such a 'dirty' business? Jito has developed a special Solana client (Jito Solana) that many validators (equivalent to Solana's "tellers") are using. Ordinary users can pay additional "tips" through Jito when trading Memecoin, allowing validators to prioritize your transaction. Jito not only accepts tips, but also bundles multiple transactions into a bundle and hands it over to validators for processing. For example, some people rush and some people pick up orders, and these transactions are optimized and sorted by Jito, which not only ensures efficiency but also maximizes MEV's profits, and further benefits are obtained from them. You may not know that the dream of those who make dog fighting tools in the market is to dig up Jito's data center location, even willing to pay a high price to purchase servers in the same data center. Why? Connecting to Jito's server would be faster. Surprisingly, this is also a secret for many people to make money, and I won't tell him about it even for ordinary people. three ️⃣ Is there still Wang Fa? Since Jito is acting so recklessly, why isn't anyone taking care of him? Isn't it enough to kill him? The interesting thing is that blockchain is a decentralized, fair competition, and transparent place. Since there are rules, there are rule arbitrageurs, and if it conforms to the natural laws of the market economy, it deserves to make this money. Hey, pull the sheep? Benefits+Technology I'll take a sip of water first, I'll be right back. Jito was not only not boycotted, but also widely accepted. In my opinion, fundamentally speaking, the interests of all parties were balanced. Let me elaborate: Validators (miners): Jito's client allows validators to receive tip sharing, which adds an extra income compared to relying solely on basic rewards before. For example, a tip of $20, Jito takes $1, and the verifier takes $19, who wouldn't be willing? The verifier has no motivation to resist, but instead competes to use Jito's technology. Big players and robots: High frequency traders, arbitrage robots, and other "smart people" have made a fortune by using Jito to snatch and sandwich orders. For example, when speculating on TRUMP, they used Jito to jump the queue and earned tens of times the price difference. For them, Jito is a money making tool, resisting it is equivalent to cutting off their own financial path. Jito himself: Jito earns a lot by taking a commission (5% tip+4% management fee), with daily expenses exceeding $20 million. It has the drive to make technology better and attract more people to use it. Damn it, who exactly is losing money? It can't be me, can it? Ordinary users (small retail investors): Small retail investors may feel unhappy, but they do not have the ability to resist. Blockchain is decentralized, and no one can forcefully kick Jito out. Moreover, many retail investors are completely unaware of the existence of MEV and Jito, and only feel that "trading is slow, stuck" or "buying is expensive", blaming the internet or luck. In fact, without Jito, there would still be Naito and MEV. Previously, validators secretly adjusted the order of transactions, and all profits went into their own pockets, while ordinary people still suffered losses (a certain public chain is still in this situation, hehe). Jito at least brought this matter to the forefront and shared some benefits with the ecosystem (validators, stakers). Instead of letting MEV operate in the dark, it's better to have an open 'butler'. It's the same on the user side, transaction time is life. You queue up at the counter to withdraw money, which is free. If you're in a hurry, you can go to an ATM (assuming there's a charge) or take the VIP channel (assuming there's a charge). In the free game, everything is chaotic yet orderly. In addition, the actual situation is that Jito's bundles and optimized sorting make the Solana network more efficient during congestion! Do you understand? It's just... if a society is in turmoil, sometimes it has to rely on the "underworld" to maintain justice, which is strange, right, but very real. The Godfather has arrived! four ️⃣ How to get along with the 'underworld'? Actually, you have noticed that I have added quotation marks here, just for the convenience of reading and understanding. The positive value brought by Jito far exceeds the negative value, with innovation in both technology and business. The only shortcoming is that they did not pay for this' black manuscript '. The losses caused by MEV to retail investors and novices are also objectively present, so when we think about this issue, we should also look at the B side after the A side. MEV gives robots and high-frequency traders an advantage, while ordinary users (small retail investors) often suffer losses. Therefore, products with good user experience tend to think from the user's perspective first. For example, OKX @ Wallet wallet automatically turns off MEV during trading to protect users. Turning off MEV (Anti MEV) has gradually become an explicit feature, which is to give more autonomy to users. When you need to pay for acceleration, you can turn it on, while normal transactions can be turned off. Some protocols (Arbitrarum) reduce MEV transactions through design, such as using a "fair ordering" mechanism to process transactions in chronological order, reducing robot competition, smoothing gas fees, and some chains or tools directly restrict MEV, highlighting "MEV free" selling points and attracting specific user groups. // Overall, Jito is not considered a "rogue company" or a "mafia", but rather a "shrewd toll booth owner". It manages the MEV business on Solana, and the commission is a bit harsh, which makes retail investors unhappy, but its technological prowess and ecosystem cannot be separated from it. Its' blackness' may cause small players to suffer, but it can also make big players and validators love it, and the community also recognizes it as a 'necessary evil'. It's like this world, where there are no fish when the water is clear. Jito, being a "rogue" openly, actually makes the world more orderly and where everyone deserves it.