BitDAO, a new decentralized autonomous organization, is launching following a $230 million funding round led by billionaire venture capitalist Peter Thiel.
BitDAO announced its DAO launch on Tuesday, completing a private sale from initial partners led by Thiel, Pantera Capital, Dragonfly Capital and Founders Fund.
Other investors include billionaire hedge fund manager Alan Howard, liquidity platform Spartan Group, Jump Capital, Fenbushi, and Ken Warwick of DeFi Protocol Synthetix, among a total of more than 20 players in the decentralized finance industry.
Bybit, one of the world’s largest cryptocurrency derivatives exchanges, is a major initial proponent of BitDAO, pledging recurring contributions to the new DAO at launch. The DAO said the company has specifically pledged to contribute 2.5 basis points of the trading volume of its futures contracts to BitDAO Treasury, which, based on this year’s run rate, is expected to generate more than $1 billion per year. have hope.
BitDAO’s recurring contribution-powered treasury will be used to provide liquidity as well as drive new protocols such as decentralized exchanges, lending, and the Synthetix protocol.
According to the announcement, BitDAO also plans to support blockchain projects through grants and support existing and emerging projects through token swaps.
A BitDAO spokesperson told Cointelegraph that the DAO will employ both permanent and project-based teams, including consultants from Spartan and Dragonfly, and the developers of Sushuwap.
The DeFi industry has seen a significant drop in recent months due to a massive selloff in the cryptocurrency market. According to DeFi data provider Defilama, the market Top most Total Value at Lock (TVL) of about $158 billion in mid-May. At the time of writing, DeFi TVL amounts to $128 billion.