• BitDAO (BIT) token holders have voted to approve a $100 million BIT buyback.
• The proposal will buy $2 million worth of BIT every day for 50 days starting on the first day of January.
• CoinMarketCap’s data may underestimate BIT’s supply which would mean the buyback would only be worth 5% of the current market cap.
The crypto market has reacted with enthusiasm to BitDAO (BIT) token holders voting to approve a $100 million BIT buyback. According to data gathered from decentralized governance platform Snapshot, the holders of 148 million BIT tokens — worth nearly $50 million — voted in favor of the proposal with not one token holder voting against it. If the vote concludes in favor of the proposal, BitDAO will buy $2 million worth of BIT every day for 50 days starting on the first day of January.
However, there is some discrepancy in the data. The current market cap of BIT tokens is estimated at $590 million according to CoinMarketCap, but the crypto-centric Twitter account Huma points out discrepancies in this data. Using 6.2 billion as the circulating supply, this puts the market cap at around $2 billion, much more than CoinGecko’s $360 million. This would mean the $100 million buyback would only be worth 5% of the current market cap.
It is possible that CoinMarketCap’s data underestimates BIT’s supply. BitDAO’s official website puts the total supply at 6.3 billion, which would mean the buyback would be worth more than 8% of the current market cap. This discrepancy could be due to the fact that not all of the coins are actively traded and some are locked as part of the foundation’s long-term vision.
The buyback proposal is part of BitDAO’s larger goal of increasing the value of the tokens. The proposal states that the aim of the buyback is to increase the demand for BIT tokens, which should lead to an increase in their price and market cap. The proposal also states that the buyback will be funded from a portion of the funds the foundation has raised in its private sale.
Although the market has reacted positively to the news, it remains to be seen whether the proposal will be accepted and the buyback will go ahead. If it does, it could have a significant effect on the price and market cap of BIT tokens.