An altcoin project has been on the rise after the “buy-in” proposal was short of approval. BitDAO’s BIT token has seen an increase of over 20 percent on a daily basis. Here are the details…
If all goes well, buyback for BitDAO starts Jan 1st
BitDAO’s bitcoin price rose more than 20 percent in less than 24 hours before the expected approval of a $100 million buyback plan. The vote distribution of the proposal has already passed the minimum threshold and received 148 million yes votes. So there is no opposition to this decision. If nothing serious happens before the deadline today evening, the vote will most likely pass. Buybacks are scheduled to begin on 1 January. The DAO will then purchase BIT for 2 million USDT per day for 50 days.
The proposal cited “limited distribution opportunities” as one of the reasons for returning excess capital to token holders. Even after the buyback program, the BitDAO treasury is expected to hold $300 million in USDT and USDC. It is also expected to hold an additional 270,000 Ethereum (ETH) worth about $345 million in the treasury.
The anonymous author of the buyback program, Catatpeanut, made a comment. He pointed out that the current price of BIT is quite attractive. Especially with the “upcoming Mantle project,” he added. Mantle is a new Ethereum Layer-2 solution funded by BitDAO that will use BIT as its native token. BitDAO is an investment DAO that funds various research, development, and grant programs, including Mantle and zkSync’s $200 million allocated zkDAO from BitDAO and funding grants for its ecosystem.
Details of altcoin price changes
Looking at the chart of BitDAO’s altcoin project BIT, it is seen that the coin started to rise especially yesterday evening. The cryptocurrency managed to rise from the $0.29 level to $0.34. It has since hovered around $0.33-0.34. It remains unclear how the price will move this evening, when the voting will definitely pass. Since it is a big expectation, the price has more upside potential. However, this rise also risks attracting investors who want to sell coins at the peak. Therefore, time will tell what will happen in price.
There are also those who oppose the buyback strategy.
cryptocoin.com As we have reported, the offer appeared last week. A significant part of the community at the time opposed the proposed action plan. Members pointed out that BitDAO’s original strategy for the growth of its treasury included direct investments and the creation of BitDAO-like assets (sub-DAOs / autonomous entities). One user stated that the buyback program will be more effective when the BIT price drops below the net asset value per token. Other users have stressed the need to burn tokens after redemption rather than send them to the treasury to maintain a sustainable price for the token.
