BIT Token Surges to Weekly High Following $200M BitDAO Ecosystem Fund Proposal

BIT jumped 5% over the weekend, outperforming both ETH and BTC, following the proposal from layer 2 network, Mantle.

AccessTimeIconFeb 27, 2023 at 2:34 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC

BitDAO’s governance token BIT has maintained its price following a weekend surge that occurred after Mantle, a layer 2 network compatible with the Ethereum Virtual Machine (EVM), submitted a proposal on Sunday to introduce a $200 million ecosystem fund to the BitDAO community.

BitDAO, one of the world’s largest decentralized autonomous organizations (DAO), saw its token jump from about 55 cents on Saturday to abut 60 cents on Sunday, a gain of roughly 5%, according to TradingView data. The rise pushed BIT ahead of bitcoin (BTC) and ether (ETH) as one of the weekend’s best performers.

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  • In the past 24 hours, the token has continued its uptrend, trading at $0.6120 at the time of publication — its highest price in a week.

    BitDAO’s fund aims to pour money into more than 100 early-stage investment projects building on the Mantle Network over the next three years. The fund is part of a larger strategy to incentivize developers to build on the modulated layer 2 network and drive its wider adoption.

    At $200 million, the fund is double the size of prolific decentralized exchange Polygon’s $100 million fund that was announced last spring and is larger than Injective’s decentralized finance (DeFi) adoption fund, launched in January.

    BitDAO has performed well in recent weeks after taking a hit during the unraveling of centralized cryptocurrency exchange, FTX. The token plunged 20% in November, prompting fears that Sam Bankman-Fried’s now-defunct Alameda Research had been quietly liquidating its BIT supply in violation of BitDAO’s agreement with the quant crypto trading firm.

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    Elizabeth Napolitano

    Elizabeth Napolitano was a news reporter at CoinDesk.