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This is a short
case study on the
world's second
largest DAO, BitDAO.
Created in 2021, BitDAO
has emerged as the
largest DAO VC,
and the second largest
DAO in the world and
exists on almost 30
different exchanges.
As with most DAOs,
BiTDAO does not have
any employees and it is
its members that handle day-to-
day operations by
voting on proposals.
BiTDAO is a permissionless DAO,
meaning that it's public
and open to all with
a $BIT token granting
them governance rights.
While the individual
voting weight in
the DAO VCs varies between
one token = one vote,
and one member = one vote,
BiTDAO values each $BIT with
the same rights giving
the larger token holders
more weight in the
decision making processes.
We will now dig into
the two main subcategories
that are proposals and voting.
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While from a
theoretical point of
view proposals are
open to all members,
BiTDAO has a minimum threshold
of 200,000 $BITs for
creating a proposal
which helps to
ensure meaningful
participation and commitment.
This threshold incentivizes
individuals to
have a significant stake
in BiTDAO's governance and
ensures that proposals come from
stakeholders with a substantial
interest in the DAO success.
This also helps reduce
proposal overload,
which could have been the case
if the threshold was lower.
However, a soft proposal and
discussion is
available off-chain on
Discourse as a
"temperature test" and is
available to all members
regardless of their
token holdings.
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Voting is a fundamental
aspect of governance,
allowing shareholders to
shape the future of BiTDAO.
For a proposal to be considered,
they must receive a minimum
of 100 million $BIT votes,
equivalent to 1%
of token supply.
This threshold ensures
that proposals garner
a substantial level of support
from the BiTDAO community.
As with many other DAO VCs,
BiTDAO has a minimum voting
duration of seven days,
giving the members
the time to study,
discuss, and evaluate proposals.
When the vote threshold of
100 million $BITs is reached,
it is a simple majority
that decides the outcome.
If the majority votes yes,
the proposal is valid and
it will be implemented.
However, if the
threshold is not met,
the proposal will fail, even if
the majority of votes
is a "yes" vote.
