BitDAO, a decentralized autonomous organization launched in July 2021, has announced a new proposal to address key issues that have arisen since its launch. The proposal aims to improve the organization’s tokenomics, project focus, and decentralization. The proposal, which is authored by user cateatpeanut 3, was posted on the BitDAO forum for community discussion.
One of the main issues that the proposal seeks to address is the lack of focus of the BitDAO strategy and narratives. The community has supported a variety of initiatives, including venture investments, ecosystem initiatives, and core product development, leading to a multi-strategy approach that lacks competitive strength. The proposal suggests that BitDAO should focus on its own long-term vision with clear strategies and resources.
The proposal also aims to address the unpredictable nature of the circulating supply of the BIT token due to the dynamic Bybit Contribution and the concentration of BIT token holdings. By modifying the Bybit Contribution from a dynamic exchange-linked amount to a fixed-schedule amount over 48 months, the proposal seeks to increase the stability and predictability of BIT tokenomics and decentralize BIT holdings and governance.
According to the proposal, the fixed-schedule contribution will start at 120 million BIT per month and halve every 12 months, totaling 2.7 billion units. The Bybit Contribution BIT will be retained in the BitDAO Treasury instead of immediately burning it, and the burn may be restarted via a subsequent BitDAO proposal.
The proposal brings several benefits, including focusing BIT tokenomics on BitDAO initiatives, such as the development and adoption of core BIT products, and reducing the likelihood of BIT being viewed as a “Centralized Exchange Token” or “Bybit Token.” The proposal also paves the way for BIT to be listed on other centralized exchanges, increases the predictability of $BIT tokenomics, and improves the decentralization of BIT holdings and governance.
Bybit, which has contributed over $600 million USDC/USDT and 177k ETH to the BitDAO treasury, will continue to partner with BitDAO in terms of technology development and product adoption. BitDAO will use BIT as its native token and be BitDAO governed and accountable. After completion of the 2.7 billion BIT fixed-schedule contribution, Bybit will likely remain the largest holder of BIT and be incentivized in BitDAO’s success.
The proposal’s tokenomic impact will result in the circulating supply of BIT being reduced from approximately 6.0 billion units to 3.3 billion units. This represents a 1.8x boost of BitDAO economics and governance voting power for all existing BIT holders. The proposal is open for community discussion, and the community is encouraged to vote on it.
This article was republished from azcoinnews.com