BitDAO proposes governance token, plans to buy back over $20 million worth of BIT monthly, further discusses burn mechanism.

BitDAO community members have proposed a governance proposal suggesting that BitDAO conducts linear buybacks of its governance token "BIT" with daily revenue of $700,000 and monthly revenue of $21 million. The market has shown a neutral response to this proposal, with BIT only seeing a modest 4% increase in the past 24 hours.

BitDAO Treasury Growth Pathway

According to the proposal, the BitDAO treasury funds are expected to continue growing through the following channels:

1. Bybit exchange revenue: Donations to BitDAO based on parameters monthly, with asset allocation of 50% ETH and 50% USDT/USDC.
2. Long-term investment strategy: Deploying assets in organizations such as Game7, zkDAO, EduDAO, labs, and venture capital to increase revenue opportunities.
3. Token appreciation in the BitDAO treasury.

BIT Repurchase Program

The proposal outlines that the repurchase program aims to enhance the economic connection between "BitDAO treasury growth" and the BIT token. Details of the repurchase are as follows:

1. The daily repurchase target amount, TDPA (Targeted Daily Purchase Amount), is $700,000, totaling approximately $21 million per month.

2. The total TDPA amount can be dynamically adjusted through BitDAO governance voting:

1. If there are other deployment opportunities or investment needs, the TDPA can be reduced to zero.
2. If the BitDAO treasury growth far exceeds other investment opportunities, the TDPA can be increased.
3. BitDAO voters also need to consider whether the current BIT price is attractive.

3. Repurchases will be conducted on the public secondary market, including centralized and decentralized exchanges.

4. To increase transparency, daily repurchases will be executed linearly through bots.

Phase One Repurchase

Initial repurchases will be funded in part by Bybit's monthly contributions:

1. Some of Bybit's contribution funds will repurchase BIT and donate them to the BitDAO treasury.
2. The total amount of the Phase One repurchase will not exceed the contribution funds from Bybit.
3. Bybit's contribution funds not used for repurchase should maintain the original asset allocation of 50% ETH and 50% USDT/USDC.

This proposal is still in the early discussion stage, mentioning further research on the destruction mechanism for BIT. If all goes smoothly, implementation could start as early as June 1st this year.

The proposal emphasizes that the purpose of TDPA is for the overall growth of the BitDAO treasury, suggesting a conservative approach in the initial stages of repurchase to retain enough treasury assets to explore other investment opportunities mentioned above.