BitDAO is one of the largest Decentralized Autonomous Organizations (DAOs) in the crypto ecosystem.
In the BitDAO ecosystem, BIT is the governance token. BIT holders can participate in the proposal and voting of changes.
The project aims to build a decentralized tokenized economy available to everyone while powering the DeFi ecosystem.
BitDAO allocates funds for the growth of the DeFi ecosystem by developing proprietary DeFi products and supporting DeFi partners' third-party projects.
BitDAO also encourages contributor participation by providing funds for initiatives contributors take on.
A group of contributors can create a community management system that benefits the whole community. BitDAO will work with them to promote and reward the project.
How to be a part of BitDAO
BitDAO is an open and decentralized community and organization, which means that users from all walks of life are encouraged to be a part and participate.
There are three main ways users can interact and be a part of the community.
Token holders can participate in the decisions and new developments of BitDAO. Bit token holders can participate in the project's governance and vote on new proposals.
Collaborators and partners
Community members can develop solutions that support the community—the community votes for new developments.
BitDAO also encourages the participation of partners. Partners are third-party projects with the same vision of growing the DeFi ecosystem.
Finally, community members are active community participants that don't hold any Bit tokens.
Those who participate in forums and social media, submitting their ideas and engaging, are considered community members.
Understanding how BitDAO works
BitDAO is a DAO or a Decentralized Autonomous Organization. A DAO is a governance and company structure used by some crypto projects. They encourage the participation of the community in a decentralized way.
BitDAO's primary goal is to encourage and promote the DeFi ecosystem. They award grants for blockchain projects, educational programs, and blockchain services to achieve that.
They also support partners' initiatives by providing cash flow to this project and acting as investors.
Research and development centers, community projects, and development teams can also receive funds and incentives when participating in the ecosystem.
All these projects need to be approved through community voting to ensure everyone thinks it's a viable and positive project.
BitDAO looks for projects they can collaborate on through token swaps and development initiatives.
The organization trades tokens to create a portfolio with new crypto and DeFi companies powering the Web3 ecosystem.
Some projects supported by BitDAO
At the time of writing, BitDAO has allocated $638M for different crypto, Web3, and blockchain projects.
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The Bit token
Bit is BitDAO's governance token. It's an ERC-20 token.
Bit token holders need to delegate their tokens to participate in governance and proposals.
Delegated voting means that Bit holders can't vote on proposals unless their voting rights are delegated to one address; it can be their wallet. Tokens are not locked or transferred via delegation.
This is a more secure way since if a delegated wallet suffers an attack, the Bit tokens aren't lost, and the Bit holder can transfer them to a different wallet.
If you are interested in the Web3 ecosystem, then BitDAO is an exciting project.
Bit token holders are also "owners" of the projects BitDAO supports, so token holders get exposure to one project and all their partner's initiatives.