Bybit has promised recurring contributions from its trading operations to BitDAO, a decentralized crypto investment fund, which aims to enhance the innovation, collaboration, and growth of the DeFi space. Peter Thiel leads the US$230 million funding.
BitDAO, one of the world’s newest and largest decentralized autonomous organizations, has completed a private sale of US$230 million from initial partners such as Peter Thiel, Founders Fund, Pantera Capital, and Dragonfly Capital. Other participants in the project include Alan Howard, Jump Capital, Spartan Group, Fenbushi, and Kain Warwick of Synthetix, among a total of more than 20 DeFi institutions and projects.
BitDAO will use its war chest to fund grants, employ developers to assist blockchain teams, and pump liquidity into decentralized finance (DeFi) projects, which offer bank-like services without the banks.
BitDAO will play a pivotal role in the growth of the decentralized token economy
BitDAO aims to promote and drive the mass adoption of open finance and decentralized tokenized economy.
Bybit, the initial proponent of BitDAO, has pledged a contribution of 2.5bps of its trading volume of futures contracts to BitDAO’s treasury. It is expected to be more than US$1 billion per year based on the January-May 2021 numbers. Bybit’s recurring contributions to BitDAO will scale with Bybit’s growth and the overall growth of the cryptocurrency industry.
BitDAO’s approach: providing financing, R&D and liquidity
BitDAO aims to support blockchain technologies through grants (to Gitcoin). Also supporting existing and emerging projects through token exchanges. With this, it supports DeFi and will allocate significant financial and human resources to drive DeFi’s growth. Specifically, it will provide financing, Research and Development (R&D), and liquidity.
BitDAO affiliated R&D centers aim to employ hundreds of talents to help design innovations and address the technical challenges facing the sector. However, the treasury, with recurring contributions, will be one of the largest asset pools controlled by a DAO. These assets can be used to provide liquidity to partners and launch new protocols such as decentralized exchanges (DEX), loans, and synthetics.
In collaboration with DeFi and CeFi partners around the world, BitDAO seeks to drive the growth of the wider ecosystem, rather than a single proprietary chain that will work with changemakers to help drive the decentralized tokenized economy and shape the future of finance for the benefit of all its participants.
BitDAO is one of the world’s newest and largest decentralized autonomous organizations, formed with the vision of leveling the economic playing field for all people in the world through accelerating the decentralized tokenized economy. It is a treasury protocol governed and updated by BIT token holders.