[DISCUSSION] BitDAO L1 Infrastructure

Background

BitDAO is expanding through a range of web3 verticals, such as: gaming with Game7, Eth Scaling with zkDAO, student bodies with EduDAO, arts with PleasrDAO, product labs, venture, and treasury management strategies. More details at: https://docs.bitdao.io/.

Opportunity

A high value area that has not yet been explored is an infrastructure / layer 1 opportunity.

Preferences

  • EVM equivalent
  • Uses $BIT as native token

Optimized for

  • High throughput EVM dApps such as derivatives Dexs, and gaming; and/or
  • DAO operations, participation, and tokenomics; and/or
  • Bridging

What’s Next

  • Invitation to the community for participation of ideas, and contributors who want to join the research and development effort
  • R&D entity to be funded by BitDAO in the future
  • Open to working with existing projects

How to Get Involved

171 Likes

I am Mog from Multichain Team. We would love to join the BitDao Chain initiative as one of interoperable layer that help connecting with more than 50 evm chain/non-evm chain.
Few things about Multichain:
Multichain: TVL and stats - DefiLlama
Exited to work/collab with BitDAO to realize L1 vision !

12 Likes

This proposal is what I’ve been waiting for because it will have a long term use for the $BIT token.

If this is done. How to deal with safety, speed, gas cost? Because all of these are problems that are still being experienced by L1

10 Likes

Will you cooperate with zkDAO to transfer to L2 in the future?

6 Likes

Would love to look at different consensus mechanisms that could effectively redefine how DAOs work too.

7 Likes

Great to see another potential use for $BIT, which if it pans out could be pretty huge for the long term holders.

Infrastructure does tend to take a while to be delivered (usually measured in years), although as we seem to be in a crypto winter within a broad bear market …meaning this may be a really good time to try this, as it should be line up (live in production) before the next crypto summer :thinking:

5 Likes

If you want to build BitDao L1, i think the best chooise is to build using Cosmos SDK (as Binance did for $BNB) because:

•Easy way to build a L1 blockchain
•Proof of Stake
•Secured by Cosmos hub (using interchain Security)
•$BIT as Blockchain token (you can stake and governance)
•full control of the blockchain
•fast and near to 0 fee
•EVM and CosmWasm compatible

Cosmos Network has a over 251 apps and chains connected: you can connect with the entire ecosystem using IBC. A lot of dapps are migrating in Cosmos (recently, dydx announced it).

Cosmos Network has over 51B value in, and is growing fast. Nowadays is the 2° network (just after Ethereum!)

I think that build BitDao in Cosmos could give a huge benefit, because you can expand your business through it. BnB is not connect with IBC, i think that if you do this instead, you can gain an advantage.

9 Likes

Personally i’m not a cosmos dev, but i’ll do everything i can to help you and get in touch with devs :slight_smile: . I really like Cosmos Network: im in crypto’s since 4 years and during this time a used few times Ethereum and is dapps (to much fees), while i’m daily involved in Cosmos. You can bring a lot of value in this network and vice versa. It could be a game changer!

3 Likes

@Ben.Zhou since you have mentioned derivatives Dexs and dApps, Here is an idea can be used for yield strategies, derivatives Dexs and dApps.

For example:
Create Optimized liquidity pool and tranfer governance power to the LP instead of Bit token.

USDC / USDT / ETH / Bit = veBit ( will have Gov power )
20% / 20% / 20% / 40% = 100% veBit ( you can give any name on the LP )

veBit can be staked for 5% to 10% APR ( can be more or fixed rate )
An oracle can be created for generating yield by ( releasing or not releasing ) certain amount or % of bit token in the market if the price reaches the target for stable coin.
Out of generating funds 50% can be allocated to the existing liquidity pool and 50% can be added to the LP stakers rewards + the market makers fees ofc. you can implement minimum lockup period for 3 months, 6 months and 1 year or more.

This strategy will make sure long term strategic goals and will help build bit treasury.stronger. Plus I like the idea of build eco-system around bitDAO. It will greatly improve perticipation of creators + devs + communities.

Do ask questions If anyone is unsure about my strategies. :slight_smile:

9 Likes

With so many EVM compatible L1s nowadays, is there anything that the BitDAO L1 can do to be special?

4 Likes

Actually, I am thinking to play a plan bigger than this. Why not build an L1 reference with the elastic of Avalanche subnet with the bigger vision for Game products and DEXs services? And reference the advantage of Cosmos SDK for its convenience for bridging.

4 Likes

Some ideas drop in here. (0-7)

  • 0/ That’s one small step for $bit, one giant leap for #BitDAO universes. :BIT: :airplane: :rocket: :full_moon:

  • 1/ so, is there any more elaborate plan for the L1? Do we have a rough prototype yet, or it is still on the suggestion step?

  • 2/ Will Ben take place an AMA recently, if yes, when?

  • 3/ Would it prefer to be a POS chain more than a POW chain? (I suggestion it will be POS only) But if it is using POS, how we handle the decentralize issues, as we have Top 1,000 holders (From a total of 17,741 holders) but the Top 10 holder occupy 95.89% of Bit token.

  • 4/ Based on the bold predictions and observations, the future web3 world will be the Ethereum plus multi-chain ecology. What kind of consensus will bit chain prefer? the snowman like Avalanche with subnet; the cosmos SDK; or the Parallel chain like BNC.

  • 5/ Personally, a combination of Avalanche subnet with Cosmos SDK would be a game-changer. As we can not only take advantage of the elastic of Subnet but also exploit the bridging mechanism from Cosmos.

  • 6/ The bitdao multi-subdao Structure would be a good fit to subnet, owning several game subnet for game7; on-chain Dexs for leverage borrowing, and derivatives; DAOs operations, and participation.

  • 7/ more discussion and idea…

15 Likes

1: Cheap gas
2: ETH way gas fee burns Bit
3: Join the ecological chain USDT, USDC… stable currency, cheap gas, attracting people to use.

7 Likes

Hey all,

I would like to express my support and contribute to R&D/tokenomics of this proposal, some opening comments here:

My suggestion: Two tokens + Roadmap with EVM (ZK-Rollups) and L1 (Sharding) + Compliance

EVM Equivalent

For approved and ongoing projects it is important to maintain a certain compatibility with Ethereum, where most developments have been created and planned.

The choices should aim to balance the Blockchain Trilemma: Security, Scalability and Decentralization.

Main types of scalability for L2:

  • Side Chains
  • Plasma
  • Optimistic Rollups
  • ZK-Rollups

⁃ Use BIT as native token

BIT currently has a design that concentrates two functions: governance and staking, but there is a tokenomics problem that does not allow both functions to operate at the same time, so BIT holders must decide if they want to earn rewards or vote and submit proposals, this decision switching is not healthy for the ecosystem.

When we increase the importance of BIT as a native token of L1, this tokenomics flaw becomes a general critical flaw, because staking native tokens are responsible for ensuring the security of the system, the basis of Game Theory present in POS/DPOS systems depends on a lot of it.

Solution:

My suggestion is that we have two tokens, a token for the governance of BitDAO and another token for the BIT Protocol (L1 BitDAO), this guarantees the governance, economic and security interests of the protocol.

We can plan a high-performance EVM that meets project requirements in the short to medium term and design a fully independent shard blockchain in the future. If possible, the EVM could be developed with zkrollups in collaboration with zkSync in which we invested $200M USD in the zkDAO proposal. In the meantime, we would do research and development to have our own blockchain for BitDAO.

Other comments:

  1. My suggestion is also effective in the field of regulations, by separating the utility token from the “financial” token, we preserve the autonomy of both areas and can make more specific uses and developments for each of them.
    In the Continent DAO proposal, we decided to create utility NFTs that represent the ownership of the hotspots and separate them from our governance token, so under the law both tokens are different objects.

  2. As @RJ mentioned, 95.89% of BIT tokens belong to the top 10 holders. In L1, this centralization will not be seen well by the industry, for comparison, Ethereum’s top 10 has approximately 24% of the total existing supply.
    So if you decide to create a new token for BitDAO and make BIT the native EVM/Blockchain token, we should think of a way to improve these numbers and decentralization. I previously conclude that it is better to keep BIT as BitDAO’s governance token and a new token for L1’s native token.

14 Likes

Is it such an issue, to combine both?.. ie., both staking & governance. In fact, it makes more sense, when the voting power attained is a function of tokens staked and time, imo.

100% :+1:

5 Likes

Hi!

I am a community member at Moledao, a blockchain ecosystem builder. https://twitter.com/moledao_io

Thinking of doing a Twitter space on this topic! Great if we can get Ben or someone from Bitdao to share more on BitDAO’s L1 plan.

Anyone else keen to join? DM me on TG or twitter @defipaca and let’s plan sth!

6 Likes

Good idea, have sent a DM to you on Twitter from the @bitdaoaembassy account :+1:

4 Likes

I don’t agree with some of your points.
“governance and staking, but there is a tokenomics problem that does not allow both functions to operate at the same time”
Maybe you should learn about DOT system,could support both staking and governance at the same time.There are many similar protocols that work this way.I don’t understand why you came to this conclusion? Is there any theoretical basis?

1 Like

As a builder, biggest issues: can we beat Polygon or AVAX on the following?

  • Speed
  • Gas fees
  • Carbon neutral
  • Reputation
8 Likes

I’m very excited about this proposal as an L1 would bring a lot of potential not only to the bitDAO ecosystem but also to the entirety of Web3, looking forward to how everything will pan out, and I’m glad we’re moving towards a direction that empowers blockchain tech as a whole and us as community and DAO.

4 Likes