Jito Labs proposed to launch the Block Assembly Marketplace on Solana, creating a Decentralization Nasdaq.

Jito Labs announced an important proposal on July 21, suggesting the construction of a "Block Assembly Marketplace (BAM)" system to achieve functionalities such as a centralized limit order book, Perptual Futures exchange, and dark pools without changing the underlying Solana protocol. This proposal could be a key step in advancing Solana towards institutional-grade trading infrastructure.

BAM Design: Enhanced Trade Sorting Capability According to the proposal, BAM has introduced a set of "BAM nodes" that operate in parallel with existing validators. They encrypt and sort transactions in a Trusted Execution Environment and send a sorted package with encrypted proof to the leader node to ensure the integrity of the order.

The BAM validators running the updated Jito-Solana client will execute these sorted transaction bundles and return proof of execution following the instructions.

A Sorting Mechanism that Achieves Both Privacy and Auditability The system has three major technical objectives:

1. Maintain order privacy before execution to suppress harmful Maximum Extractable Value (MEV);
2. Provide publicly auditable records for all sorting packages;
3. Allow applications to access sorting logic through Plugins to achieve "instant" oracle updates, market maker priority order cancellation, and other advanced features.

Each plugin can inject or reorder instructions in a trusted environment and has a revenue-sharing mechanism, with fees distributed among node operators, validators, stakers, and Jito DAO.

Gradual Deployment and DAO Governance Path Jito Labs will first operate BAM nodes and form an Alpha validator team with Triton One, SOL Strategies, Figment, Helius, and others for testing. According to the roadmap, the plan is to achieve a "high single-digit" percentage of delegated staking in the initial phase, gradually expanding to over 30%, and ultimately achieving 50 geographically well-distributed nodes, with governance rights transferred to Jito DAO.

Decentralized Trading Infrastructure for Institutions Jito pointed out that BAM can provide institutional investors with deterministic execution and verifiable privacy – an important need for high-frequency traders. The system does not rely on private Mempool or off-chain trading protocols, allowing developers to customize transaction ordering logic, which may attract order flows that were originally inclined towards centralized exchanges to migrate to the Solana chain.

Jito further stated that with the arrival of Perptual Futures and dark pool plugins, Solana's high throughput capacity will support its evolution into a "decentralized Nasdaq."

Yield shifting to DAO governance, testing is about to start The Jito project plans to initiate a governance proposal to inject all BAM and block engine fees into the Jito DAO treasury, transforming the value capture model from traditional MEV extraction to a fee distribution model focused on ordering services.

The plan is currently awaiting feedback from validators, developers, and token holders, and the code will enter the production testing phase after collecting opinions.

Conclusion The BAM proposal from Jito Labs demonstrates another leap for the Solana ecosystem towards being institution-friendly and diversifying trading functionalities. This system could become an important cornerstone for the future on-chain derivatives market and high-frequency trading. Future community feedback and testing progress are worth paying attention to.