The BitDAO Treasury is forecasted to grow via several avenues:
- Bybit contribution, which is transferred monthly based on the following parameters https://docs.bitdao.io/partners/bybit-pledge. The current contribution is composed of 50% ETH and 50%USDT/USDC. More details here: BitDAO.
- Deployment of assets to Autonomous Entities (Game7, zkDAO, EduDAO, etc…), labs, venture/swaps, and yield opportunities. These are long term strategies which aim to achieve a flywheel of growth for the BitDAO Treasury.
- Growth of project tokens in the BitDAO Treasury.
The purpose of the $BIT Purchase Program is to increase the economic connection between BitDAO Treasury growth and the $BIT token.
$BIT Purchase Parameters
The “Targeted Daily Purchase Amount (TDPA)” shall initially be set at $700,000 per day (approximately $21M per month).
TDPA can be dynamically adjusted pending BitDAO vote:
a. If funds are required for asset deployment opportunities, the TDPA can be decreased, with a lower bound of zero.
b. If the BitDAO Treasury is growing faster than forecasted asset deployment opportunities, the TDPA can be increased.
c. BitDAO voters shall also consider whether the prevailing $BIT price is attractive for purchase.
Purchasing shall occur on publicly available secondary markets including CEXs and DEXs.
For transparency, the daily purchases shall be executed linearly with a bot.
Phase 1 Purchasing
- Initial purchases shall be conducted as a component of Bybit’s monthly contributions:
a. Part of the Bybit monthly contribution shall be used to purchase $BIT and then be contributed to the BitDAO Treasury;
b. Phase 1 TDPA will not exceed Bybit’s monthly pledged contribution amount;
c. The remaining pledged contribution amount not used for $BIT purchase purposes shall retain the prevailing contribution asset mix (currently 50% ETH, 50% USDC/USDT).
Option: Phase 2 Purchasing
- In the future, pending BitDAO vote, a reputable third-party service provider can perform $BIT purchases on behalf of BitDAO, on the condition that all purchasing occurs on publicly available secondary markets (DEXs, CEXs).
- As a separate proposal topic, we can explore the burn of $BIT from the BitDAO Treasury.
- Start 2022 June 1st.
The Targeted Daily Purchase Amount (TDPA) should aim to balance between: 1) the growth of BitDAO Treasury; and 2) opportunities to deploy assets for long-term growth, via: autonomous entities, labs, venture/swaps, and yield.
The recommendation is to be conservative with TDPA at the start, and retain enough treasury assets for the opportunities stated above.