DEFI MARKET

BitDAO to conduct IDO on MISO: Bybit, Peter Thiel, and other major institutions join, introducing a new type of platform token?

2021/8/10

BitDAO will launch its Initial Decentralized Exchange Offering (IDO) on SushiSwap on August 16 at 9:00 PM Taipei time, 13:00 UTC. BitDAO, initiated by the world's top three derivatives exchange Bybit, is a decentralized autonomous organization (DAO) dedicated to promoting the development of DeFi. Its notable partners have been a major focus of attention.

Table of Contents

What is BitDAO?

BitDAO is a decentralized autonomous organization that allocates resources to DeFi protocol and product development, provides liquidity to partners, and offers funding. Holders of the governance token BIT can participate in decisions regarding project collaborations, financial allocations, liquidity support, and other issues.

Funding Source: Bybit Continuously Invests in the Protocol Treasury

BitDAO currently has a fixed source of development funds. The exchange Bybit has pledged to invest funds in the protocol treasury monthly, consisting of 50% ETH, 25% USDT, and 25% USDC, based on a calculation of 0.025% (2.5 bps) of the futures trading volume each day. BitDAO provides a data analytics page to view the daily contribution amounts, with the current treasury amount totaling $78 million.

MISO Token Issuance

The SushiSwap token issuance platform MISO will launch the Initial DEX Offering (IDO) for BitDAO governance token BIT on the 16th, using a Dutch auction where bidding can be done with ETH or SUSHI, with more ETH available for bidding. The starting price is $2, the floor price is $1.2, and the auction will end on August 30th. Due to the decreasing price mechanism of the Dutch auction, early bidders for BIT will also receive airdrop rewards.

Information on the token distribution and lock-up period can be found here:

Compliance Era! A New Type of Platform Token?

Many large cryptocurrency exchanges are preparing for compliance measures, with exchanges like Binance declaring a move towards compliance with financial institutions. The security nature of platform tokens has been a hot topic of discussion, such as whether using exchange profits to repurchase platform tokens could involve securities. Consequently, many exchanges have opted to burn tokens instead of using the term "repurchase." Platform tokens currently do not represent ownership or profit-sharing rights, but rather serve as ecosystem applications derived from exchanges, driven by user expectations of the exchange's performance to boost token prices.

Bybit is a large exchange that issued tokens relatively late and took a different approach this time. The emergence of BIT through a DAO does not include functions to offset trading fees. Bybit instead donates to BitDAO based on trading volume, supporting the development of the organization and establishing a connection with BIT. In the era of increased exchange compliance, this approach may reduce regulatory issues for the exchange itself, while simultaneously supporting various projects in the DeFi world and expanding business opportunities.