BitDAO's latest BIT repurchase proposal is currently being voted on! The proposal involves repurchasing $100 million worth of BIT over 50 days, with a 100% approval rate.

The BitDAO governance proposal BIP-18 has entered the voting stage. This proposal, following the previous BIP-9 and BIP-12, is the latest token buyback proposal that will initiate a buyback of up to $100 million worth of BIT tokens from the secondary market starting next year. However, will this buyback activity help drive the price of BIT up?

Introduction to BitDAO BIP-18 Proposal

BIP-18 is a proposal that involves parameter modifications from the previous two proposals. It is set to begin on 1/1 next year, with a daily repurchase of 2 million USDT worth of BIT tokens in the public secondary market for a duration of 50 days, totaling up to 100 million USD. The previous BIP-9 had a daily repurchase amount of 700,000 USD, and BIP-12, approved on 7/1, increased it to 1.5 million USD, with a repurchase period from 6/1 to 9/6.

The goal of the token repurchase is to enhance the economic connection between "BitDAO Treasury Growth" and the BIT tokens. The proposer believes that the current price of BIT is attractive and is optimistic about the Ethereum Layer2 network Mantle led by Bybit. Therefore, it is deemed a good time to repurchase now, and if BitDAO prioritizes investing in BIT products, it will contribute to additional strategic outcomes for BIT and its holders.

After the repurchase plan is completed, BitDAO's treasury will still hold 300 million USD of USDT/USDC and approximately 270,000 ETH worth about 345 million USD, sufficient for over 5 years of BIT product development.

Current Status of BIP-18 Vote

As of the deadline, this proposal has received strong community support with a 100% approval rate, and is expected to be finalized by 12/31.

Will the Repurchase Help Boost Prices?

The following charts show the price trends of BIT and BTC during the previous repurchase period from 6/1 to 9/6. Although the prices showed a downward trend, it is evident that BIT had a greater rebound compared to BTC during this period.

Furthermore, while BIT dropped by around 16% throughout the period, BTC experienced a decline of about 40%, indicating that BIT exhibited stronger resistance to the decline.

However, as prices are influenced by multiple factors, BIT has dropped over 90% compared to its previous highs, and it cannot be confirmed whether this repurchase will lead to a price increase. Nonetheless, it can provide some support to the market price.