BitDAO to adjust Bybit Contribution to DAO treasury

BitDAO to adjust Bybit Contribution to DAO treasury

On April 20, BitDAO will begin transitioning from its current dynamic exchange-linked Bybit Contribution to a fixed-schedule amount. The process, which will happen over the course of 48 months is expected to increase the stability and predictability of $BIT tokenomics while prioritizing product and user growth.

The BitDAO Improvement proposal (BIP-20) was approved on Wednesday morning with more than 99% support from the community. The governance process received a total of 4,113 votes on Snapshot.

Created by DAO member @CatEatPeanut, BIP-20 argues that despite the plethora of community-backed initiatives and pilot projects, the DAO lacked focus in terms of “strategy and narratives.” The current multi-strategy approach, in the forms of Bybit Contribution, venture investments, ecosystem initiatives, and core product development, was faulted for its lack of competitive strength.

The author also pointed out two other issues that the proposal seeks to address – the unpredictable nature of the $BIT circulating supply and the concentration of $BIT token holdings.

That said, the recently passed proposal will change the Bybit Contribution from a dynamic exchange-linked amount to a fixed-schedule amount over 48 months. The new fixed Bybit contribution schedule will start at 120M $BIT per month, halving every 12 months. This translates to a total of 2.7B tokens.

Ultimately, the proposal hopes to shift the DAO’s focus from treasury growth to product and user growth, as well as focus on BitDAO initiatives, such as the development and adoption of core $BIT products, instead of Bybit performance.

Despite the massive backing the proposal received at the governance stage, many members of the DAO expressed their desire to maintain the status quo of burning the contribution from Bybit. However, the second vote option was to retain the Bybit Contribution in the BitDAO instead of immediately burning, with the choice to restart the burn through a subsequent BitDAO proposal.

Commenting on the need to maintain the status quo, one of the voters added a comment to his transaction that reads:

In bears, we should be focused on allocating capital towards building the BitDAO/Mantle ecosystem, not burning BIT to appease speculators.

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