The BitDAO decentralized autonomous organization (DAO) utilizes BIT tokens as its governance token, giving holders the power to propose and vote on decisions within the ecosystem. The objective of the project is to create a decentralized economy that is accessible to all participants. The protocol is governed by those who hold BIT tokens.
Key Takeaways
- BitDAO is a decentralized autonomous organization (DAO) that aims to provide a decentralized platform for the trading and management of digital assets.
- BitDAO utilizes the power of blockchain technology to provide a transparent and secure platform for users to manage their digital assets.
- The platform also allows for the creation and management of decentralized trading pairs, which allows for more efficient and decentralized trading of digital assets.
- BitDAO’s native token, Dao Token, is used as a governance token that allows token holders to vote on the direction and development of the platform.
- The platform is built on the Ethereum blockchain and is fully decentralized, meaning that there is no central authority controlling it.
The BitDAO project will focus on using allocated funds to drive the growth of the decentralized finance (DeFi) ecosystem by developing its own DeFi products and supporting related partners and projects. Additionally, funds may be allocated to support BitDAO contributors in areas such as the development of custom governance modules, community management, and the creation of a BitDAO foundation. The ultimate goal is to aid in these initiatives to benefit the broader community. Decisions will be made through a proposal and voting system within the BitDAO platform.
How does BitDAO work?
The BitDAO ecosystem is governed by holders of BIT tokens through a decentralized autonomous organization (DAO) structure. This allows for a proposal and voting process, giving BIT token holders control over the activities and decisions of the BitDAO protocol. The goal of the project is to create a decentralized tokenized economy that is accessible to everyone.
The following actions will be taken only after a successful proposal and vote on the BitDAO platform:
- Funding or milestone incentives will be provided to development teams and R&D centers for creating BitDAO solutions or supporting partner projects.
- Upgrades will be made to BitDAO’s core protocols, particularly in regards to governance and treasury management.
- A token swap feature will be implemented for current and new initiatives.
- Treasury funds will be deployed using various strategies.
- Grants will be given to blockchain technology projects, education programs, and other blockchain-related services.
- Support will be provided in terms of cash flow to partner initiatives.
Governance Token (BIT)
In the BitDAO ecosystem, the governance token is called BIT, which is an example of Compound Finance’s governance token (COMP). This token was chosen over a traditional ERC-20 token because it allows for delegated voting and off-chain vote aggregation, with the possibility of transitioning to on-chain governance in the future.
Delegated Voting
In order to participate in voting or proposing on the BIT DAO platform, holders must delegate their voting rights to a specific address. This can be done by assigning their own address as the delegatee. Importantly, delegation does not involve locking or transferring ownership of the tokens, meaning that even if the delegatee address is compromised, the BIT tokens remain safe and can be reassigned to a different address.
BitDAO Development
The organization launched on August 3rd, 2021 with significant investment from notable backers such as Peter Thiel, Founders Fund, Bybit, Pantera, Spartan Fund, Sushiswap, Polygon, and Dragonfly Capital among others. The goal of BitDAO is to support builders in executing a wide range of ideas and experiments to create an economy of decentralized assets, technologies, and organizations. This will be achieved by partnering with specialized autonomous entities, token swaps with existing projects and limiting governance to mandate and funding approval to avoid bottlenecking of decisions. BitDAO aims to be an investment vehicle for other decentralized products and services, where their success will further drive BitDAO’s growth.
The launch of $BIT, the governance token for BitDAO, took place through a Dutch Auction on MISO, a launchpad for new projects on SushiSwap. A total of 10 billion $BIT tokens were released, with 60% reserved for Bybit, 30% allocated to the BitDAO treasury, 5% designated for launch partners, and 5% distributed through a private sale. Sushiswap’s DAO was the first to collaborate with BitDAO and offered technical assistance for governance and treasury operations, in return they were given 2.6% of the total supply. The BitDAO treasury currently mainly holds $BIT and ETH, with plans to diversify through token swaps in the future.
In the BitDAO ecosystem, multiple independent teams can work together to develop proposals, establish partnerships, and create products that can be put up for approval by BitDAO governance. This allows for a wide range of developers and partnership coordinators to contribute to the BitDAO mission, and for BIT token holders to select and support the most promising ideas.
BitDAO FAQ
How do I Participate In BitDAO (BIT) Project?
BitDAO welcomes anyone to participate in its community through various ways such as contributing to the project, forming partnerships, or holding BIT tokens. Community members who are not token holders can still participate by joining the forum and social media, as well as proposing their ideas. Token holders, on the other hand, have the power to approve the best ideas presented to them and can delegate their votes to community leaders.
Additionally, BitDAO seeks to collaborate with other DeFi and CeFi projects that can support its mission and work towards mutual cooperation. As holders of BIT tokens, they own the platform and have a say in the direction of BitDAO’s growth and the usage of its treasury resources.
What makes BitDAO unique?
BitDAO operates differently from traditional companies as it is a decentralized community of individuals who contribute to the project. These contributors are incentivized by being rewarded with BIT tokens and have a vested interest in seeing the project succeed.
The decision-making process within BitDAO is decentralized as well, with proposed changes to the protocol being put to vote by BIT token holders. The contributors of the project can also submit suggestions for consideration, but only holders of BIT tokens are eligible to vote.
The community will evolve over time, with leaders emerging organically through participation in governance and forums. Ultimately, it is the collective efforts of the token holders, investors, and community members that will drive BitDAO’s vision of supporting the growth of the DeFi ecosystem.