- BitDAO, one of the biggest decentralized autonomous organizations, has been spotlighted after greenlighting a $100 million buyback for its token.
- In reaction, the BIT token – which has recently outperformed the crypto market – rallied as much as 17% to hit multi-month highs.
- In other developments, BitDAO has announced the launch of Mantle – a modular Ethereum Layer-2 (L2) network.
- One of BitDAO’s most prominent supporters, ByBit, also announced a $66 million donation to the project in November.
BitDAO is a decentralized autonomous organization (DAO) that supports DeFi projects through research and development, token swaps, and grants. It aims to build a decentralized tokenized economy that is available to everybody.
BitDAO hopes to support several projects in decentralized finance (DeFi), DAOs, non-fungible tokens (NFTs), and gaming through research and development, liquidity bootstrapping, and funding.
One of BitDAO’s primary aims is to attract developer talent via token swaps and co-development efforts. In addition to supporting other projects, BitDAO aims to build core products that will help the functionality and effectiveness of BitDAO and other DAOs.
BitDAO is not a company, so it does not focus on profit generation. BIT is a tradeable governance token of the BitDAO ecosystem. The Ethereum-based token carries proposal and voting power for users to make decisions.
The BitDAO community recently announced that the team is considering buying back $100 million worth of its bit token. The BIP-18: $BIT Purchase Program is currently being voted on by community members.
The proposal will see the BitDAO team purchase $2 million in USDT worth of BIT for 50 consecutive days, starting on January 1st, 2023. The proposal also extends DAO’s capital deployment strategy and previous buyback schemes.
The recommended priorities for BitDAO capital deployment include high priority for BIT-related products and low priority for swaps and investments, as well as yield strategies. BitDAO currently holds assets to cover at least five years of BIT product development.
Although the buyback scheme would increase the BIT holding of BitDAO, the project remains DAO with the biggest treasury without their token. As of December 5th, BitDAO’s reserve was valued at over $766 million – more than three and a half times the second DAO on the list.
ByBit, one of the world’s leading crypto exchanges, announced on December 20th that it had made a $66 million contribution to BitDAO through the month of November. It has also been a major player in the monthly burning of BIT tokens.
At the beginning of December, the BitDAO team announced the soft launch of a modular Ethereum Layer-2 (L2) network called Mantle. BitDAO hopes to use Mantle to bolster lower fees and fast transactions on the Ethereum network.
BitDAO (BIT) has outperformed most of the crypto market as developments in the community stack. While most cryptos are down on the day, week, and month, BIT is a gainer on all timeframes.
The 24-hour price chart for BitDAO (BIT). Source: CoinMarketCap
Following the updates on the BitDAO proposal, BIT spiked as much as 17.3% on December 29th, closing the day as the top gainer. BIT is up by 2.6% in the last 24 hours and 18.5% in the last seven days.
The seven-day price chart for BitDAO (BIT). Source: CoinMarketCap
The recent rally has taken the price of BIT as high as $0.3397. This is its highest value since the collapse of FTX. BitDAO is now ranked as the 48th largest crypto, with a market cap of $705 million.
On Wednesday, November 28th the BitDAO team announced that the public testnet of the protocol will be released in January 2023. The aim of Mantle is to offer “low gas fees” and faster transaction speeds for users of Ethereum.
According to the BitDAO team, Mantle will become the first network to adopt EIP-3074, an Ethereum Improvement Proposal. It defines two new opcodes and extends smart contract functionality and meta-transactions.
At the time of this writing, the current results show that 148 million BIT has been staked in favor of the BIP-18 purchase program against 5 BIT not in favor. At this pace, the proposal is set to be passed by BitDAO.
On the Flipside
- There have been mixed reactions to BitDAO’s proposal to buy back $100 million worth of BIT tokens.
- Some users have argued that buying BIT as it sits above the net asset value of a basket of underlying Ether, USDT, and USDC could be a bad idea.
As one of the biggest DAOs, BitDAO has one of the biggest communities, who are great believers in the core of the project. Reacting to the announcement of Mantle, a Twitter user, @Purple_M0ney, wrote:
If you're missing @0xMantle you may be missing the world's most breakthrough L2 for ETH! The project is being built under the guidance of @Bybit_Official and @BitDAO_Official and will use the well-known token $BIT 🚀🚀🚀#Mantle #MantleNetwork #BitDAO pic.twitter.com/Lyw7IBblhU— Purple Money ( ⚙️, ⚙️ ) (@Purple_M0ney) December 23, 2022
On the prospects of BIT, the founder of AlfaDAO, Viperr.eth, shared:
Nothing like waking up to BitDAO Buyback program surpassing Quorum.— Viperr.eth 🐍 (@CryptoSources) December 29, 2022
$2m being TWAPed daily for 50 days totaling $100m.
👀 only thing that can prevent this from mooning is Alameda’s holdings being liquidated but I don’t think it will happen this soon. pic.twitter.com/oAOCAN1vdA
Bullish about BIT’s performance in 2023, another user, @TheMartianGoat, wrote:
Why You Should Care
BitDAO looks to partner with existing and emerging projects via token swaps as it aims to build a decentralized tokenized economy. This could strategically place BitDAO at the center of some of the biggest developments on the Ethereum network.