What Is BitDAO (BIT)?
Tech Deep Dives

What Is BitDAO (BIT)?

10mo ago

CoinMarketCap takes a deep dive into BitDAO (BIT), a project owned by BIT holders. It aims to make contributions towards the growth of the DeFi ecosystem.

What Is BitDAO (BIT)?

Table of Contents

BitDAO is one of the largest decentralized autonomous organizations (DAOs). In the BitDAO ecosystem, BIT is the governance token that comes with proposal and voting power. The goal of the project is to build a decentralized tokenized economy that is available to everybody. It is a protocol managed by holders of BIT tokens

BitDAO will allocate funds for the growth of the DeFi ecosystem by developing BitDAO DeFi products and supporting DeFi partners and projects. They may also provide funds to BitDAO contributors, such as for the development of a bespoke governance module, community management initiatives, or the future BitDAO foundation. The project will work to assist these initiatives so that the rest of the community benefits from them. All decisions will be made through the BitDAO proposal and voting system.

How To Participate In BitDAO (BIT) Project?

Anyone can join BitDAO’s community by contributing to the project, becoming a partner, or holding the tokens.

Community Members 

Non-token holders can join their forum and social media, as well as pitch their ideas. Holders of BIT tokens may embrace the good ideas presented to them. Delegated votes may be given to community leaders.

Contributors and Partners

Any DeFi or CeFi project that can help BitDAO or is ready to search for methods to operate together in a partnership.

Token Holders

BIT token holders own the platform and have the ability to recommend and vote on BitDAO's growth strategies as well as the usage of BitDAO's treasury resources.

How Does BitDAO (BIT) Work?

The holders of BIT tokens govern and administer BitDAO. It works on the DAO mechanism as discussed below.

DAO (decentralized autonomous organization) is a common governance structure utilized by crypto ventures. Through a proposal and vote procedure, the DAO framework allows BIT token holders to have control over BitDAO activities.

The following measures will be carried out only after a successful proposal and vote on the DAO platform:

  • For creating BitDAO solutions or assisting partner products, development teams and R&D centers will be granted financing or milestone incentives.
  • BitDAO's fundamental protocols, particularly governance and treasury management, will be upgraded.
  • For current and new initiatives, token swap feature will be provided.
  • Treasury funds will be deployed based on various tactics.
  • Grants will be given to blockchain technology projects, education programs, and other blockchain services.
  • Support will be provided to partner initiatives in terms of cash flow.

Governance Token (BIT)

BitDAO's governance token BIT is an example of Compound Finance's governance token (COMP). This was chosen over a regular ERC-20 token because it allows for delegated voting and off-chain vote aggregation, with the possibility of switching to on-chain governance in the future.

Delegated Voting 

BIT holders are unable to vote or make proposals unless their voting rights are delegated to an address. A single address, such as the holder's own, can be delegated in a single instance. 

Tokens are not locked or transferred via delegation. It implies that if a delegatee wallet gets hijacked, infiltrated, or connected with the wrong smart contract, the BIT tokens are not lost, and the BIT holder can delegate it to a different address.

Growth Strategy Of BitDAO (BIT)

BitDAO will seek projects to collaborate with via token swaps and co-development initiatives. The project will swap tokens and build a portfolio of the best existing and new DeFi and crypto ventures. BitDAO will be rewarded for assisting these partner projects in their quest to become category leaders. It will also award grants to teams that make crypto-related research or products that offer benefits to a wide range of audiences. The project aims to create such key products that will help BitDAO and other DAOs run more efficiently. These include:

  • A combination of on-chain and off-chain products and best practices that make up the governance suite.
  • DAOs' capacity to deploy and oversee assets in order to generate yield or launch goods which is also known as Treasury Management.

The project will form new alliances, acquire the DeFi assets with growth potential, and develop useful solutions using fundings through assets and regular contributions. The ultimate goal of BitDAO is to invest in the success of its partners and the industry as a whole. 

BitDAO (BIT) Tokenomics

The total supply of BIT tokens stands at 10,000,000,000. The BitDAO Treasury will retain 30% of all BIT tokens. Token holders essentially possess the Treasury tokens in accordance with their token holdings (e.g. a person who holds 1% of the total supply of BIT token will have the ownership of 1% of the 30%, or an additional 0.3% of the treasury tokens)

BitDAO (BIT) Price

The BitDAO (BIT) token price is around $1.57 at the time of writing.

The Principles Of BitDAO (BIT) That Make It Unique

Unlike regular companies, BitDAO does not operate with a traditional hierarchy of managers and employees. Rather, it is a group of people who contribute to the project. Contributors are rewarded with BIT tokens and are motivated to see the project reach its true potential. 

Changes to the BitDAO protocol will be proposed by various people and teams. It is up to the holders of BIT tokens to vote on whether these proposals should be approved or rejected. The contributors of the projects may submit suggestions and vote on them on the condition that they are BIT token holders. BitDAO will be a growing project, with community leaders forming over time. The project's path will be influenced by governance suggestions and forum participation. In short, the token holders, investors, and community members will drive BitDAO's vision and goal of devoting financial and human resources to support DeFi's growth.

Partnership With SushiSwap DAO

BitDAO has partnered up with SushiSwap DAO which is a decentralized community-driven platform with a total market cap of $1,573,218,925.49 with its token known as SUSHI priced at $12.39, at the time of writing.

SushiSwap has assisted BitDAO with the design and strategy for its governance and treasury management. In the near future, SushiSwap and BitDAO plan to collaborate in the growth of both platforms - pending approval from both protocol DAOs. 

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