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DeFi

The BitDAO Community Voted To Earn A 15% Annual Yield

November 5, 2022 - Around 2 mins mins to read
A governance proposal that would attempt to create a dividend from a piece of the BitDAO organization’s $2.1 billion treasury is currently up for a vote by the community.
The BitDAO Community Voted To Earn A 15% Annual Yield

The plan aims to increase bit’s liquidity on Uniswap while also producing yields for bit holders (bit is BitDAO’s native coin).

The proposal states that there are four deposit choices available to members of the BitDAO community, ranging from 1 million to 20 million bit tokens. The deposit amount would increase from $425,000 to $8.5 million based on the spot price of bit tokens at that time. If the community votes against the proposal, the DAO will not proceed.

A portion of its $2.3 billion treasury reserve would be deposited into its token vault on the Ichi platform as part of the proposal. A DeFi protocol called Ichi allows DAOs to create their stablecoins called oneTokens in exchange for the collateral they have invested.

The BitDAO Community Voted To Earn A 15% Annual Yield

Each oneToken produced through this procedure is linked to the dollar. Projects that use Ichi to mint their white-label stablecoins do so following a predetermined minting ratio set by the protocol. These projects can earn yields on their deposits thanks to Ichi’s internal rate of return (IRR), which provides.

The deposit plan must also pass the ballot to take effect. The Ichi DAO would have to agree to a 15% IRR on the BitDAO treasury deposit for the first year, according to the plan. Ichi’s current IRR for bit token investments is 12%.

The polls will close on November 10. According to early voting results, just three wallets are voting, with two favoring a deposit of 20 million bit tokens and one favoring a deposit of 10 million bit tokens.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.