BITDAO’s bit token rises 20% ahead of $100 million buyback
Quick Take
- BITDAO’s bit token is up 20% as market participants expect a $100 million buyback proposal to pass tomorrow.
- If passed, BitDAO will begin repurchasing the token at $2 million in USDT a day for 50 days starting Jan. 1.
The price of BitDAO’s bit token jumped more than 20% in less than 24 hours ahead of the expected approval of a $100 million buyback plan.
The voting distribution for the proposal has already passed the minimum threshold and has 148 million yes votes, with no opposition. Unless something drastic happens prior to the Dec. 30 deadline at 11 p.m. EST, the vote should pass.
The buybacks are slated to begin on Jan 1., and the DAO will purchase bit at $2 million in USDT a day for 50 days.
The proposal cited "limited deployment opportunities" as one of the reasons for returning excess capital back to token holders. Even after the repurchase program, the BitDAO treasury is expected to maintain $300 million in USDT and USDC, with an additional 270,000 in ether worth around $345 million.
“The current price of $BIT is attractive, especially with the incoming Mantle project,” a pseudononymous writer of the buyback program called cateatpeanut said in the proposal referring to a new Ethereum Layer 2 funded by BitDAO that will use bit as its native token.
BitDAO is an investment DAO that has funded various research, development, and grant programs including Mantle and zkSync’s zkDAO, which was allocated $200 million from BitDAO and funds grants for its ecosystem.
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