BitDAO Proposes $100 Million Token Buyback In 2023
- The BitDAO community is considering a proposal to buy back $100 million worth of its bit token.
- According to this suggestion, BitDAO should set its daily goal to buy limit at $2 million in USDT for 50 days starting on January 1 of the following year.
- BitDAO holds the second-largest treasury among DAOs and is worth $1.7 billion.
As part of the DAO’s capital deployment strategy, BitDAO is considering buying back its bit token for $100 million starting at the beginning of the next year.
As part of its initiatives to encourage internal capital allocation, BitDAO has proposed the repurchase. The DAO, which debuted in 2021, differs from existing DAOs based on DeFi protocols.
BitDAO, on the other hand, is an investment DAO that aspires to provide funds to encourage Web3-based research and development. The DAO has also started working on its own initiatives, and in 2023 it intends to introduce the Mantle Ethereum Layer 2 network.
The strategy is detailed in a governance proposal submitted to the DAO. According to this idea, BitDAO should set its daily goal to buy amount at $2 million in USDT for 50 days starting on January 1 of the following year.
The $1.7 billion in treasury held by BitDAO, half of which is in the native bit token, will be used for the repurchase. As a result, after the conclusion of the repurchase period, the DAO’s share of holdings in its native coin will rise.
If authorized, at the conclusion of the planned 50 days, the DAO will have spent $100 million in USDT to repurchase its bit token. The idea also builds on earlier repurchase programs.
The value of the reserves held by DAOs, whose native tokens make up the majority of their treasuries has suffered significantly this year. This is due to the fact that the price of these tokens has decreased during 2022, along with that of the whole crypto market.
DAOs are researching strategies to diversify their treasuries in response. By growing their exposure to stablecoins and making investments in low-risk physical assets like U.S. Treasuries, they are achieving this.
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