The decentralised autonomous organisation (DAO) BitDAO announced a merger with the L2 project Mantle Network to create a single ecosystem under its brand.
With the passing of BIP-21, the following actions will be taken:
✅ Position @0xMantle as the unified ecosystem brand with a product focus.
✅ Authorize a token conversion plan.
✅ Simplify tokenomics for a fresh start for the Mantle Network Mainnet, and token listings.
— BitDAO (@BitDAO_Official) May 19, 2023
The merger became possible after the community approved the BIP-21 proposal “Brand, Token and Tokenomics Optimisation”.
According to the statement, Mantle will inherit the decentralised governance processes and the DAO treasury of about $300 million in USDC/USDT stablecoins and about 270 000 ETH worth more than $486 million.
From these funds, the project’s product development will be financed. The first of them is the layer-2 network for scaling Ethereum based on the Rollups technology. The BitDAO-supported team presented the solution in November 2022. In January the first testnet Wadsle began operation; in May the second — Ringwood — is expected to launch.
Under the “one brand, one token” concept, Mantle (MNT) will become the sole asset in the ecosystem. Holders of the existing BIT DAO token will receive it not on a snapshot basis, but via a soft conversion mechanism. Details of the conversion will be put to the community for consideration at a later date.
BitDAO began operations in June 2021 after attracting $230 million in a private funding round with the participation of Peter Thiel and Alan Howard. The organisation aimed to support DeFi projects through grants and token swaps.
In August BitDAO raised 112 000 ETH (about $356 million at the time) and launched the governance token BIT.
Earlier in February 2023, the Mantle team proposed to BitDAO participants to vote for the creation of an ecosystem investment fund worth $200 million.