Brand optimization calls for BitDAO to replace BIT token

BIT holders will have to get their tokens converted for the new Mantle token after the approval of the community, no changes in governance

  • Published:
  • 16/05/2023 03:05 PM

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The replacement of BitDAO’s token (BIT) is proposed in accordance with the principle of “One Brand, One token” on BitDAO’s Snapshot. This Snapshot is an off-chain governance voting platform that is used for several blockchain projects and even by decentralised autonomous organisations (DAOs).

The BIP-21 proposal calls for the unification of the entire ecosystem- BitDAO for governance and Mantle as the product are now to be joined as “Mantle”. 

There will be no changes in the treasury management and governance processes, but BIT holders will have to go through the process of converting their tokens in exchange for the Mantle token post the community approval.

Mantle, which is a scaling layer 2 protocol constructed on Ethereum, will soon be launched. This move has been initiated prior to the launch. Crypto exchange Bybit is backing BitDAO in collaboration with others, namely VC Peter Thiel, Dragonfly and Pantera Capital.

A fixed exchange rate for all users may be rolled out for the conversions of these tokens taking into account all the governance rights and other interests as mentioned in the description of BIP-21. The token holders will be given a set timeline for the conversion along with the facility of a gradual process available at the various channels.

The same rules and ratios shall be applicable to all the token holders for the purpose of this conversion and as per the proposal, they are not to take any advance action. 

BitDAO claims that the BIT ecosystem will be made simpler through this “brand optimization”. “There is complexity as to whether $BIT should be valued for its governance component or product component or some combination," claims the proposal.

BitDAO aims at improving its tokenomics through the acceleration of contributions along with replacing its tokens. It wants to remain vested in its schedules from its launch in 2021, which means that no outstanding vesting schedules will be inherited from the original BitDAO launch.

With over 25 million BIT votes, the proposal has received 100% support at the time of writing and the facility of voting on the proposal is open till 19th May. Community members too supported the branding unification on BitDAO's governance forum.

"Merging the brands before the Mantle mainnet release is a strategic move that will help create a unified identity for the ecosystem. This will ensure that users, developers, and token holders can associate the token and its value proposition with the Mantle brand," wrote a DAO member.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash