BitDAO Price

What Is BitDAO?

‍BitDAO is one of the biggest decentralized autonomous organizations (DAOs) managed by holders of BIT tokens. The project aims to build a decentralized and tokenized economy that’s easily accessible to everyone through proposals and voting, “enabling (the) mutually beneficial web3 ecosystems of people, products and public goods."

BitDAO plans to designate funds to grow the DeFi ecosystem by creating BitDAO DeFi products and supporting DeFi projects and partners. They may also grant funds to BitDAO contributors to develop a bespoke governance module, initiatives for community management or a BitDAO foundation in the future.

What Is BIT?

The governance token in the BitDAO ecosystem, BIT comes with the powers of proposal and voting. All decisions on BitDAO are made using its proposal-and-voting system.

BIT is an example of COMP, Compound Finance's governance token. This template was chosen over the regular ERC20 token, as it enables delegated voting and off-chain vote aggregation with the feasibility of shifting to on-chain governance in the future.

The BIT token was auctioned on Sushiswap’s token launchpad, MISO. Twenty million tokens were acquired with SUSHI, SushiSwap's native token, while 180 million BIT tokens were bought with Ethereum.

At the time of this writing (June 9, 2022), 1 BIT token is trading at $0.55.

Who Is the Founder of BitDAO (BIT)?

BitDAO does not have any founders. Instead, the project is managed and maintained by contributors who hold BIT tokens.

BitDAO received $230 million in a funding round led by PayPal co-founder Peter Thiel, the Thiel-founded Founders Fund, Dragonfly Capital and Pantera Capital. Two other noteworthy funders are Alan Howard, co-founder of Brevan Howard Asset Management, and Synthetix's Kain Warwick.

As an early supporter of BitDAO, Bybit pledged recurring contributions to the BitDAO treasury.

What Is BIT Used For?

BIT holders can use their tokens in the following ways:

• Storage: Many investors use BIT tokens as a store of value

• Spending currency: Holders can use BIT tokens as a currency for buying and selling goods and services

• To reward content creators: BIT tokens can be used to reward content creators for their online creations

• As a foray into the crypto market: Holders can use their BIT tokens to experiment with cryptocurrency, as BIT is relatively inexpensive

• Proposals and voting: BIT token holders can submit proposals to improve the platform. While members of the online forum and other contributors can also submit proposals, the right to vote lies only with BIT token holders. A proposal is approved only if it gets a positive vote from a majority of BIT holders.

How Does BitDAO Work?

As mentioned earlier, BitDAO utilizes the mechanism of the DAO, a common governance structure employed by crypto ventures. Through proposals and voting, the DAO framework allows BIT token holders to control BitDAO activities.

After a majority of token holders has voted to pass the proposal, the following measures can be carried out on the DAO platform:

• Development teams and research & development (R&D) centers can be granted financing or milestone incentives for creating BitDAO solutions, or for assisting partner products

• BitDAO's underlying protocols, especially governance and treasury management, can be upgraded

• The token swap feature can be made available for both current and new initiatives

• Treasury funds can be deployed, based on several tactics

• Grants can be awarded to blockchain technology projects, education applications and other blockchain services.

• Support (in terms of cash flow) can be provided to partner initiatives

Why Is BIT Valuable?

BitDAO isn’t just an automated market maker (AMM) or a lending platform — it’s much more. 

BitDAO is also a community that contributes to the growth and development of DeFi. How does it achieve this? Well, BitDAO participates in R&D and liquidity pools, and supports ongoing development through grants. Additionally, the platform aims to control one of the largest asset pools, providing liquidity to partner protocols.

If BitDAO achieves the following goals, the value of BIT is sure to climb higher:

Partner with both existing and emerging projects through token swaps that allow the BitDAO treasury allocation to create a compilation of top crypto tokens. The top priority is spot and derivatives DEXs.

• Develop core products that will improve the functionality and efficiency of BitDAO and other DAOs. The core product carries a set of on-chain and off-chain governance solutions and products. The DAO’s treasury management can deploy and monitor these assets to earn yield.

• Offer grants to teams in the crypto industry for research or product development. These grants are voted on and provided for the crypto world's common good.

What Makes BitDAO Unique?

On BitDAO, people and teams who don’t hold tokens can join the BitDAO forum and social media and pitch ideas for making changes to the protocol. However, approval is dependent entirely upon BIT token holders (i.e., they vote on whether these proposals should be accepted or discarded). 

BitDAO is a growing project, and is expected to continue gaining momentum as demand for decentralized products and services ramps up. Governance suggestions and forum participation will influence the project's path, with community leaders stepping up to lead the community over time.

BitDAO's uniqueness lies in the fact that token holders, investors and community members alike are the driving force behind BitDAO's vision of promoting the growth of DeFi.

Company/Team Composition

BitDAO isn’t a conventional company, which typically consists of an administrative staff and a team of employees. Instead, it’s managed by the same individuals who contribute to the project. By holding BIT tokens, users are entitled to present their own proposals or vote on existing ones. However, they cannot impose their views on other contributors.

For example, if a proposal states, "BitDAO should build X product," it’s unlikely to be executed, as BitDAO doesn't have employees and cannot push third-party development teams to act. A better way of putting it would be, “We believe that X product is needed, and we’ll build it. Here’s the BitDAO funding request, along with a detailed proposal.”

How Many BIT Are in Circulation?

At the time of this writing (June 9, 2022), BIT has a circulating supply of approximately 586 million tokens and a maximum supply of 10 billion tokens. Currently, BIT’s price is $0.55, with a live market cap of roughly $322 million.

How to Store BIT

If you’re planning to hold your BIT for a long time, safety will likely be your number-one priority. Although cryptocurrency exchanges are generally safe, there have been numerous hacking incidents resulting in users losing funds. The very nature of exchange wallets ("hot wallets") implies that they’re always online, thereby exposing some vulnerabilities on a platform.

A safer way to store your BIT tokens is to put them into a cold wallet, which can only access the blockchain when you plug it online for sending funds. This offline storage system helps reduce the risk of compromising your wallet’s security.

A paper wallet, a type of free cold wallet, is an offline-generated pair of public and private addresses that you’ll have to write down somewhere safe. However, paper wallets are not durable, and are susceptible to code stealing. Additionally, unless you have an impeccable memory, the addresses need to be written in safe, multiple locations because if they’re lost, your assets effectively become irretrievable.

A hardware wallet is the best cold wallet option for storing BIT tokens safely. Hardware wallets are usually USB-enabled devices that hold your key information durably. Designed with military-level security, their firmware is constantly maintained and improved by their manufacturers. 

Ledger Nano X and Ledger Nano S are the most popular hardware wallets, costing approximately $50 to $100 based on the features they offer. Despite their relatively high cost, hardware wallets are the best choice for keeping your BIT tokens secure indefinitely.

How to Buy BIT

You can buy BIT from any top crypto exchange, including Bybit.

How to Buy BIT on Bybit

To purchase BIT on the Bybit exchange, simply follow these steps:

1. Head to the spot trading page of BIT. 

2. Select your trading pair on the left side of the page. For BIT, you can choose to trade with USDT, BTC, USDC and DAI.

3. Choose the type of order you’d like: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the amount of BIT you wish to buy.

4. Click on Buy BIT.

5. Once you’ve confirmed that the information is correct, click on Buy BIT.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT you’ve paid to buy BIT.

3. Click on Buy BIT.

4. Once you’ve confirmed that the information is correct, click on Buy BIT.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

   Market Price: Order price need not be set.

   Limit Price: Order price needs to be set.

4. According to order types:

   Market Buy: Enter the amount of USDT you’ve paid to buy BIT.

   Limit Buy: Enter the number of BIT you want to buy.

5. Click on Buy BIT.

6. Once you’ve confirmed that the information is correct, click on Buy BIT.

7. View your order details under Conditional on the web page, and All Orders → Current Orders on the Bybit app.

For more help, you can also visit the Bybit spot trading guide.