Summary
- BitDAO has proposed a new adjustment to Bybit’s contributions to its treasury.
- The proposal targets the contributions made to Bybit, one of the biggest cryptocurrency companies in the industry.
- This upgrade is meant to increase stability and predictability of BIT’s tokenomics, leading to more decentralization and reducing circulation from 6 billion tokens to 3.3 billion.
BitDAO Proposes New Bybit Contribution Mechanism
BitDAO, one of the biggest decentralized autonomous organizations (DAO), announced a key proposal that will change its tokenomics. The goal of this proposal is to modify the contributions made by Bybit, one of the biggest cryptocurrency companies in the industry. The main part for this new adjustment is that it will switch from a dynamic exchange-linked amount to a fixed scheduled amount over 4 years. This amount will start at 120 million BIT per month and will halve every year.
Benefits of This Upgrade
The upgrade will have numerous outcomes. It will help increase stability and predictability of BIT’s tokenomics through having a clean schedule for Bybit’s activities going forward as well as lead to more decentralization of BIT holdings and overall governance. It also seeks to reduce number of BIT in circulation from about 6 billion tokens down to 3.3 billion tokens in the next few years, which tends to have positive impacts on crypto token prices. Lastly, BitDAO itself would benefit with an 1.8x boost for its economics and voting power due this change in contribution structure.
Bybit Contributions so Far
So far, Bybit has contributed over $600 million USDT/USDC and 177k Ethereum into BitDAO Treasury since it became part of BitDAO community. The statement said: „BitDAO will continue partnering with Bybit in terms of product ideation, bootstrapping product development, BIT integration, and product distribution.“
