[PASSED] BIP-18: $BIT Purchase Program, Update Jan 2023


This proposal is authored by cateatpeanut.

This proposal is a parameter update to BIP-9: $BIT Purchase Program, and BIP-12.


  1. Set the Target Daily Purchase Amount (TDPA) at $2.0M USDT per day starting 2023 Jan 1st for 50 days (total $100M USDT).


Key Reasons

  • Recommended priorities for BitDAO capital deployment include: High = $BIT products; Low = swap and investments, yield strategies (see explanation below).

  • Analogous to traditional corporations, when there are limited deployment opportunities available, excess capital may be returned to token holders via distribution or token repurchasing. Token holders have different risk appetites and opportunities that they can explore with their own capital (separate from the DAO’s mandates and risk tolerances).

  • Post $BIT purchase, the BitDAO Treasury will still hold $300M USDT/USDC and 270k ETH (~$345M), which should be sufficient to cover 5+ years of $BIT product development.

  • The current price of $BIT is attractive, especially with the incoming Mantle project.

Recommended on Priorities (a personal opinion)

$BIT Products

When BitDAO was launched in 2021, the original strategy was to grow the treasury via direct investments, and the creation of BitDAO-like entities (sub-DAOs / autonomous entities) and investments. This strategy has had questionable impact on driving outcomes for $BIT, and there have been calls by the $BIT community and stakeholders to develop $BIT core products to drive adoption. The most performant DAOs (Lido, Aave, Uni) have been centered around underlying core products which have large addressable markets and longevity.

Mantle is envisaged to be one of these $BIT core products. Mantle is an Ethereum layer-2 network built with modular architecture delivering low fees and high security. Mantle provides a protocol to attract mass users and dApp adoption, and better outcomes for marketing and growth activities. Note: that initial development of Mantle has been bootstrapped by Bybit, with the next phase being a DAO proposal and budget cycles for expanded development and go-to-market activities.

References: twitter announcement, TheBlock media release

Swaps and Investments

It is not recommended to pursue swaps and investments that do not have additional strategic outcomes for $BIT, due to the following reasons: 1) has little impact on $BIT token holders other than passively observing investment returns; 2) DAOs have less flexibility to negotiate competitive deals compared to specialized VCs; 3) DAOs have fewer options for post-investment legal and governance involvement once funds have been transferred (see FTT swap situation).

Yield Strategies

There has not been community consensus on whether to allocate the treasury to yield generating products (onchain vaults, centralized platforms, funds, etc.). In hindsight, some products of interest did not have good outcomes, and we are fortunate BitDAO assets were not exposed. Examples of recent events include: centralized platform yield (FTX, BlockFi, Genesis, Gemini Earn); and blue-chip DeFi protocols such as AAVE v2 longtail assets risk, and Lido stETH price decoupling.

There is high systemic risk in crypto due to: 1) difficulty in calculating a fair price and slippage for altcoins (protocols rely on oracles or liquidations mechanics are vulnerable); and 2) the pressure of projects to compete on go-to-market timing and financial product innovations resulting in many novel products that have not yet been empirically battle-tested. 3) web of borrowings and collateral assets across entities and other “degen-box” type activity.

The risks scale with capital deployment size, and liquidity may be scarce when we need to unwind positions. As such, it is not recommended that BitDAO participate in yield strategies for the time being.


During the low tide, investing in others is worse than investing in yourself~ Reduce exposure to risks and prepare for Mantle, I agree with this proposal well.


whether buying $BIT per day from bitdao treasury balance or from bybit ?

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Hi @cateatpeanut, I have some curious issues from this purchase program and I hope you can answer it,

  1. This updated purchase program is it just kept in treasury, or keep for uses of Mantle Network in the future?

  2. Is there any changes to the current bybit contribution’s burning program? Will the buyback of bit are going to replace the bit burning from bybit contribution?

I think it is not a good idea to buyback at this price level.
ETH+USDC+USDT around $731,000,000
Outstanding BIT around 6,646,000,000
Net Asset Value per BIT Token = $0.11

So I think we better repurchase only when the token price falls below net asset value per BIT Token.

With the monthly burn from Bybit contribution, Net Asset Value per BIT Token has already been increasing.


First of all, I have reservations about this repurchase. Bybit is about to issue a year-end bonus of 92 million bits. At this time, bitdao proposed to repurchase it, giving people the feeling that it is to basebybit’s year-end bonus, and the treasury will pay for the year-end bonus. The community’s repurchase did not give priority to community interest. There are not many stable currency assets in the treasury. Meaningless repurchase without seeing the dawn of the bull market is of no positive significance to the community.

bybiy has many $bit token already. So We need to buy back it.
Buy back mean it’s not a burn. it will transfer to Dao Reserve. then we can use it after coming bull market. So we need to buy back when Bear market.

Nice proposal, BIT is really too cheap now, we should do buybacks. But some questions here:

  1. Since Sept. 16, TDPA has been paused and Bybit has been contributing its own BIT to the DAO, so is this a proposal about restarting TDPA with current Bybit’s contribution unchanged? please clarify.
  2. Is this buyback from secondary market like previous rounds?

before buyback program dosn’t chance price up, because a few big wallet selling everday more than Target Daily Purchase Amount.
8 days ago bybit moved private sale tokens and lounch partner rewards token to Bybit Flexible adress

i’am holding bit more than one year and price always down .

cateatpeanut i think you are insade the bybit if bybit wants back bitdao money don’t need buyback program .
be honest us

I’m afraid I have to disagree with bip 9. We should constantly buyback and burn. Bit tokens still don’t have demand, if we don’t buy back and burn bit tokens will go to zero. Buyback and burn at least 2024 because every month 180 million tokens will release.

We have 3 billion assets and I think it’s enough money to invest in 3-4 years.

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Great proposal! But it is vital important to ensure this proposal execute exactly under the proposal.

Hi @cateatpeanut, we recommend BitDAO to perform $BIT buyback operations using the Pulsar TWAMM Protocol.

@cateatpeanut, after two rounds of contract audits by Peckshield and Secure3, Pulsar is now live on the Ethereum mainnet and Goerli testnet. Apex Pro is using Pulsar TWAMM for the first time with us for BANA-USDC’s BuyBack (Crypto Trade to Earn | ApeX Pro (DEX)) and already has $1M in liquidity. dForce has also recently submitted a proposal for the future use of Pulsar TWAMM for USX-DF’s Liquidity-Swap Facility (Snapshot).

Spend 100mil usd for around 300mil BIT while we already have 3 bil BIT in treasury, besides around 200 mil BIT per month contributed by Bybit? It doesn’t make sense.
Stablecoin garantees BitDAO’s value. We need keeping it safe in treasury. Now we need focus on building strong ecosystem. Focus on Mantle, not BIT’s price at this time. What we need to do now is BUILD and BURN, not buy back our native token while runing out net asset (stablecoin). Let’s build sustainable development, long life project, not a pump dump project.


because bybit want BitDAO’s Stablecoins, they transfered locked wallets to bybit adreses , prepare too sell ,
this buyback program not incrase bit price

I think this is a timely and reasonable proposal. In anticipation of future market volatility, we should get rid of weak hands holding the BIT token. To do this, you need to buy tokens from them now. Otherwise, they will sell them to other weak hands, which can eventually lead to a catastrophic drop in the price of the token.

In addition, maintaining the price of the BIT token will attract new long-term holders to the project.

As long as the project does not have a permanent source of income in the portfolio, buying back the token from the market looks like a reasonable action.

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Most of all I will miss reading the high systemic risk yield strategies proposals that promise a few basis points of return :grinning:

[VOTING] BIP-18: $BIT Purchase Program, Jan 2023

Get involved with BitDAO governance by casting your vote for BIP-18 now:


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Voting on BIP-18 is now closed.

Yes: 148M BIT (100%)
No: 5 BIT (0%)
Quorum: 148M / 100M

BIP-18 has passed