BitDAO (BDAO) is a new decentralised autonomous organisation (DAO) founded by Peter Thiel, Founders Fund, Pantera Capital, and Dragonfly Capital. It is regarded as one of the most unique and most prominent DAOs, founded to level the economic playing field for everyone globally by propelling the decentralised tokenised economy. This way, it will promote the mass adoption of decentralised finance, as well.
A $230 million private transaction was made feasible with the initial partners. A private token sale round was used to finance, with Fenbushi, Spartan Group, Jump Capital, and Kain Warwick of Synthetix, as well as 20 other institutions and DeFi initiatives.
Bybit, an Asian cryptocurrency exchange, has promised a 2.5 basis point donation of its futures contracts to BitDAO. It is estimated to be worth more than a billion dollars every year, supporting Bitdao’s aim of increasing acceptance, cooperation, and innovation in decentralised finance as broadly as feasible. The crypto exchange’s donations to the new DAO are expected to rise in tandem with Bybit. Furthermore, BitDAO’s associated R&D centres plan to employ many specialists to focus on engineer breakthroughs and technological challenges.
BDAO is a Bitcoin-tied coin that closely mirrors Bitcoin, much like a stablecoin. It serves as a governance and DeFi token. Similar to a stablecoin, BDO can be used as collateral as long as the token it is tied to remains stable. It can be tied with other multichain tokens such as BSC, POLKA, or Solana.
The organisation intends to encourage expanding the whole cryptocurrency network rather than a particular proprietary chain in coordination with Decentralised Finance (DeFi) and Centralised Finance (CeFi) partners across the world. BitDAO pledges to work with change-makers to drive the decentralised tokenised sector and create the future of finance for any investor who wants to participate.
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BDAO’s multichain architecture aims to replace today’s centralised tokens, subject to censorship and counterparty risk, with a decentralised solution that addresses (1) Bitcoin’s chronic production difficulties and (2) Ethereum’s high transaction cost. Even though its native DAO governance and DeFi token are connected to the value of Bitcoin, the organisation intends to add other tokens in the future.
They also aim to prioritize research and development, as the majority of the additional money will be dedicated to it and finance and liquidity operations. Their primary objective is to attract developer talent to blockchain technology by utilising monetary resources in various formats (grants and token swaps). Contributions to the Treasury will be used for a variety of purposes, including assisting partners in developing new protocols in decentralised exchange (DEx) platforms and financing synthetics.
BitDAO intends to involve their community by allowing currency holders to pick which projects to invest in. According to estimates, over half of all crypto transactions in early 2021 were for DeFi projects, indicating that the DeFi business is gaining traction among venture investors.
Closing thoughts
BitDAO aims to use its significant financial and human resources to accelerate DeFi innovation, collaboration, and growth. The organisation even went so far as to say that BitDAO is giving DeFi its “full support” and that a significant amount of financial and human resources would be dedicated to its expansion.
Dragonfly Managing Partner Haseeb Qureshi also commented on the subject, stating that BitDAO will be one of the most “exciting” initiatives in DeFi. According to the firm, the BDAO treasury is on course to become one of the largest asset pools owned by a DAO.
The decentralised finance industry has grown dramatically, with DAOs becoming popular instruments for monitoring progress. According to DeepDAO, a data analytics portal for DAOs, decentralised autonomous organisations already handle assets worth more than $550 million. This figure is anticipated to become much higher as new DAOs are formed and current DAOs expand.