What is BitDAO (BIT)?
BIT is the governance token for the BitDAO ecosystem. The BitDAO network aims to build a community of Web3 developers and investors that covers everything from decentralized finance and education to arts and gaming.
BitDAO was built on the Ethereum blockchain and BIT is an ERC-20 token. The platform’s goal is to expand the DeFi ecosystem and work towards the mass adoption of blockchain-based tokens. The platform is run by its decentralized autonomous organization, known as the BitDAO, which makes all protocol-related decisions.
How Was BitDAO Created?
Unlike some crypto projects that have names or pseudonyms standing behind them, BitDAO does not have a core team or listed founders. Instead, it’s run by a completely decentralized community of programmers, developers, and other contributors. One of its key values is an open community that welcomes users of all backgrounds.
The idea behind BitDAO was to foster the core principles of blockchain – building a permissionless, decentralized network. It focuses on exploring the possibilities of Web3 technology in different fields, from technology to entertainment. BitDAO’s goal is to create a space that promotes open finance – also known as decentralized finance (DeFi).
The official BitDAO crypto trading began in August 2021. The token showed high volatility from its early days, experiencing frequent market fluctuations. The BIT price during its first week in the market varied between $1.48 and $1.87.
In its first year, BitDAO generally followed the broader trends of the crypto market. In November, the token saw significant growth, reaching the highest-recorded BitDAO price at $2.97 in 2021, and its first 365 days overall. This matched the growth experienced at the time by the biggest cryptocurrencies in the market, such as Bitcoin and Ethereum.
What Are the Main Features of BitDAO?
BitDAO has a fixed maximum supply of 10 billion tokens. This makes it an anti-inflationary asset. The BIT price is expected to increase over time as the scarcity of the asset grows. According to the BitDAO tokenomics, 5% each of the total supply was allocated to the private sale and as launch partner rewards.
30% is in the BitDAO Treasury to be used for milestone rewards, grants, and other purposes. These assets are considered to be owned by token holders proportionally to how many tokens they hold. The Treasure funds can only be allocated by a governance vote and cannot be accessed under other circumstances.
15% went towards Bybit Flexible while the largest share of 45% went to Bybit Locked. A large number of tokens was allocated to Bybit due to its pledge to make contributions to the BitDAO treasury. Bybit is holding these funds privately and can use them to support BitDAO’s business growth, as well as research and development.
BitDAO presents itself as a “collective of builders and stakeholders enabling mutually beneficial Web3 ecosystems of people, products, and public goods.” It has collaborated with well-known blockchain communities, including zkDAO, EduDAO, and Game7.
The platform creates a developer-friendly environment that can be used to build blockchain tools to improve the quality of networks and DAOs. Developers can take advantage of on- and off-chain toolkits that optimize governance processes. BitDAO also hopes to bring developers together for collaborative blockchain projects.
The platform utilizes token swaps to invest in new and prospective DeFi projects. The platform queries various decentralized spot and derivatives markets and uses the BitDAO Treasure funds to build a collection of the assets on the radar. The new assets can then be compared to the BitDAO price value, traded further, or used for liquidity.
In addition to its digital solutions and toolkits, BitDAO also supports blockchain developers and researchers via its grant program. The BitDAO members vote on which projects they believe should receive funding and determine what the BIT price value of the grant should be.
The core principle of BitDAO is that it runs as a fully decentralized autonomous organization and is considered one of the biggest communities in the crypto space. Every BitDAO coin holder is eligible to participate in the governance processes. All users, regardless of the BitDAO price value they hold, can submit proposals regarding the protocol.
The DAO is responsible for allocating the grant funds, selecting which tokens should be traded in swaps, and contributing to the network directly. It also determines when milestone rewards can be allocated and what the BIT price value of such rewards should be. It provides financial support for various blockchain R&D projects.
The community has acknowledged that, over time, some figureheads may stand out in discussions. However, users are prohibited from imposing their opinions and decisions on other members.
The decentralized autonomous organization represents the community both on- and off-chain. Users participate in forums, educate others about BitDAO on social media, and may be appointed as community moderators on platforms like Reddit.