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What is BitDAO (BIT)? Everything you need to know about BIT Token

BitDAO is a DAO with millions in existing assets and forecasted contributions. What make BitDAO unique? Learn more about BIT Tokenomics.
Amber avatar
vytran
5 min read
Published Jul 30 2021
Updated 3 days ago
what is bit token

What is BitDAO?

BitDAO is a DAO with millions in existing assets and forecasted contributions.

For those who are unfamiliar with the term "DAO", DAO is Decentralized Autonomous Organization that is represented by rules encoded as a transparent computer program, controlled by the organization's members and not influenced by third parties. Therefore, DAO creates and opens the world of freedom and trusted environments for communities to build and support anything.

BitDAO is a DAO that aims to support the builders of the decentralized economy and is an open platform for proposals to be voted upon by BIT token holders.

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what is bitdao
BitDAO Website: https://www.bitdao.io/

How does BitDAO work?

BitDAO will look to partner with projects through token swaps and co-development efforts. BitDAO can support in the form of research and development, liquidity boot strapping, and funding:

Swap: Token Swap and accumulate a collection of the top DeFi and crypto projects. Swaps will align with BitDAO's interests. They will support the partner projects to become category leaders, and one of their priority partners is Spot and Derivatives DEXes.
Build: Build core products which enable the DAO to function more effectively, including Governance suite & Treasury Management.
Grant: Provide grants for projects about DeFi, governance, layer1/layer2, privacy, NFTs, etc. sectors. It will also provide grants for contributors to BitDAO (i.e., building a custom governance module or efforts in community management…).

All grants will go through BitDAO’s proposal and voting process.

bitdao work
BitDAO Voting Process

BitDAO can provide multiple advantages to projects by:

Creating and partnering with specialized autonomous entities (AE) for ecosystem funds, art, farming, R&D, ventures, events, grants, education, DAO operations services, etc.
Finding ways to avoid micro-decisions from being bottlenecked by the top-level BitDAO governance process. Limit BitDAO governance to mandate and funding approval. Allow partners to be autonomous.
Boosting partners to become category leaders via R&D, liquidity, funding, and operational support.
Attracting builders and align incentives. Make the creation and operation of autonomous entities as convenient as possible.
bitdao work 2

BIT token holders will determine the actions and direction of BitDAO through the proposal and voting process.

Possible proposals include:

1.
Direct partnerships or swaps with projects
2.
Expansion via specialized autonomous entities such as: ecosystem funds, artist guilds, farming cooperatives, R&D Labs, etc.

Anyone can propose partnerships and product upgrades for BitDAO. BIT token holders will vote on whether to approve or reject these proposals. Ideas need to provide sufficient analysis and be executable.

BitDAO Flywheel for growth

BitDAO benefits from the success of partner projects and the crypto industry as a whole. The success of BitDAO partners will increase the contributions to, and value of, the BitDAO treasury, allowing more resources to be deployed. This is the flywheel for growth.

bitdao flywheel
BitDAO Flywheel

Note: BitDAO is not a company. It does not have a management team or employees. BitDAO is a collection of builders and stakeholders who hold BIT tokens and are motivated to make the project a success.

Detailed information about BIT token

BIT token metrics

Token Name: BitDAO
Ticker: BIT
Blockchain: Ethereum
Token Standard: ERC-20
Contract: 0x1A4b46696b2bB4794Eb3D4c26f1c55F9170fa4C5
Token Type: Utility and Governance
Total Supply: 10,000,000,000 BIT
Circulating Supply:  Updating…

BIT Token Allocation

Private Sale: 5%
Launch Partner Rewards: 5%
BitDAO treasury: 30%
Bybit Flexible: 15%
Bybit Locked: 45%
bit token allocation
BIT Token Allocation

BIT Token Release Schedule

Private Sale: 12-month linear vesting after 3-month cliff
Launch Partner Rewards: Updating…
BitDAO treasury: 12-month linear vesting after 3-month cliff
Bybit Flexible: Updating…
Bybit Locked: 24-month linear vesting after 12-month cliff

BIT Token Use Case

BIT token currently has these main roles:

Proposal: Submitting proposals to the DAO.
Vote: Voting for the BitDAO proposals.
Swap: Token Swap with partner projects.

How to buy BIT Token

You can buy BIT Token through these exchanges:

DEXs: Coin98 Exchange, SushiSwap,...
CEXs: Bybit, MEXC, FTX...

How to store BIT Token

You can store BIT token on Coin98 Wallet with these simple steps:

Step 1: Open Coin98 Wallet & click Receive on the home screen.

Step 2: Search BIT Token.

Step 3: Click on the correct result, copy the wallet address and send BIT to this address.

store bit token
How to store BIT Token

Team, Investors, and Partners

Team

Because BitDAO is a Decentralized Autonomous Organization. Therefore, every BIT token holder will be able to make contributions, build upon the protocol, and customise it to their preferences through governance voting.

Investors

In the past, BitDAO successfully raised $230M through a private sale. The round was led by Peter Thiel, Founders Fund, Pantera Capital, and Dragonfly Capital. Other prominent investors included Alan Howard, Jump Capital, and Spartan Group.

Partners

partner bitdao
BitDAO's Partners

Their two most important partners are SushiSwap DAO and Bybit, with the following support:

SushiSwap DAO: Support the technical side of BitDAO governance and treasury management design and roadmap. At launch, SushiSwap received 2.6% of the total supply of BIT tokens (260M BIT)
Bybit: Bybit has pledged to contribute 0.025% of future trading volume to BitDAO's treasury, which in 2021 exceeds $1B per year. They will also dedicate resources to BitDAO protocol development and partnerships. They have contributed a lot of value to the whole BitDAO ecosystem
bitdao announcement
Bybit Announcement

Roadmap and Update

BitDAO roadmap details are anchored on the BIT Token Holders due to the DAO’s characteristics. As a result, through proposal and governance voting, any BIT token holder can plan for the future of the BitDAO protocol.

Is BitDAO a good investment?

This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.

As a member of the DAO, your profit may have a chance to be more than doubled as you invest in the early stages of the project, such as the seed round, private round... and you will also be supported by the DAO's research team.

However, the entrance to being a member of the DAO is tightly regulated and normally requires a large fund available.  In this case, BitDAO is the largest DAO with more than $2.5B in treasury, much higher than many DAO protocols such as the LAO, DuckDAO, Flamingo, etc.

bitdao investment
BitDAO Treasury

In detail, the revenue of BitDAO will come from two sources: 

Bybit Contribution: As I said earlier, 0.025% of the trading fees from Bybit will directly go to the BitDAO treasury. The daily average value of the fund to the treasury is more than 2M and can reach $1B yearly. Here is the daily data of Bybit contribution to BitDAO treasury

bybit contribution
Revenue from Bybit in December, 2021

ROI from invested projects: This fund is derived from the ROI of BitDAO’s invested projects. Currently, this fund has not been activated yet.

Besides the positive side of BitDAO, however, the crypto market will sometimes go through a rather long winter. At such times, not only will the ROI be low, but the main cash flow from ByBit will also be absent, which has a great impact on the project valuation. Therefore, you should always carefully consider your options before making any financial decisions.

Similar Projects

Some notable DAOs that focus on crypto projects similar to BitDAO are The LAO, DaoSquare, DuckDAO, Komorebi, etc. More DAOs in other sectors can be seen here:

dao lanscape
DAO Landscape