What is BitDAO (BIT)?

In the cryptocurrency ecosystem, you have likely heard the term “whale” tossed around. But how does the idea of a “digital cooperative”—not run by a single individual, but by thousands of people collectively managing a treasury worth billions of dollars—sound to you? This is exactly the vision BitDAO (BIT) set out to achieve, quickly amassing one of the largest treasuries in crypto history.

However, the story didn’t end there. Instead of remaining solely an investment club, BitDAO evolved into a giant that builds its own technology: The Mantle Network.

In this guide, we will break down what BitDAO (BIT) is, how it operates, why it gained such massive popularity, and what its current transformation into Mantle (MNT) means for investors—all explained in language accessible to everyone, from crypto enthusiasts to professional investors.

What is BitDAO? Core Concepts

In its simplest terms, BitDAO was established as one of the world’s largest Decentralized Autonomous Organizations (DAO).

Do not think of this as a traditional company. There is no CEO or Chairman of the Board. Instead, there are thousands of BIT token holders who decide on the project’s direction and determine how the billions of dollars in the treasury are spent.

The driving force behind BitDAO includes some of the biggest names in Silicon Valley and finance, such as Peter Thiel, Founders Fund, Pantera Capital, and Dragonfly Capital, alongside Bybit, one of the world’s largest cryptocurrency exchanges. Bybit committed to regularly contributing a portion of its futures trading volume to the BitDAO treasury, ensuring the project’s “war chest” remained perpetually funded.

What Was BitDAO’s Objective?

BitDAO’s primary mission was to expand the decentralized economy (DeFi). It deployed its massive funds as grants or investments in the following areas:

DeFi Projects: Startups developing new financial technologies.
Governance: Empowering token holders to steer the future through voting.
R&D: Technical projects pushing the boundaries of blockchain technology.

How Does BitDAO Work? (Non-Technical Explanation)

You don’t need to look at complex code to understand the logic behind BitDAO. The system is built on “token ownership” and “voting.”

Proposal Submission: Someone from the community or the core team submits a proposal—for example, “Let’s invest this amount from our treasury into Project X” or “Let’s alter the token economics in this way.”
The Voting Process: BIT token holders review this proposal. The more BIT tokens you hold in your wallet, the more weight your vote carries.
Execution: If the “Yes” votes constitute a majority, smart contracts are triggered, and the transaction is executed automatically or via authorized multi-signatures.

This structure transformed BitDAO from a mere cryptocurrency into a living, breathing organism capable of making decisions.

The Critical Pivot: Transitioning from BitDAO to the Mantle (MNT) Network

This is the most vital section for any investor or researcher, and it is the part many outdated guides miss.

In 2023, the BitDAO community made a historic decision (Proposal BIP-21). They wanted to go beyond being just an investment DAO. The decision was essentially: “Let’s not just be a fund that invests in projects; let’s build our own blockchain network.”

With this shift in vision, the BitDAO brand was re-branded as Mantle (MNT).

Old Token: BIT
New Token: MNT
The Swap: BIT tokens were converted to MNT tokens at a 1:1 ratio.

Consequently, if you search for “BitDAO” on exchanges today, you will generally find Mantle (MNT). This does not mean the project ended; on the contrary, it implies it has evolved into a high-performance Layer-2 network running on Ethereum. They are no longer just managing money; they are providing the technological infrastructure upon which applications are built.

Key Features of the BitDAO (Now Mantle) Ecosystem

The foundation that constitutes the project’s legacy and power (now under the Mantle umbrella) includes:

1. Massive Treasury

The defining characteristic that separates BitDAO from the pack is its liquidity. With assets in ETH, USDT, and USDC worth billions, it possesses one of the deepest pockets in the crypto world. This ensures they can survive and continue development even during bear markets (market downturns).

2. Game7 and the Gaming Sector

Believing in the future of blockchain-based gaming, BitDAO established Game7, an autonomous entity supporting game developers. The goal was to bridge the traditional gaming world with the crypto world.

3. EduDAO

There is no progress without education. BitDAO partnered with the world’s most prestigious universities—such as Harvard, MIT, and Oxford—to launch EduDAO, which funds blockchain research. This serves as proof that the project is focused not just on “profit,” but on “innovation.”

Is Investing in BitDAO (BIT/MNT) Sensible? Risks and Opportunities

Every investment decision is personal, but it is essential to analyze the general market sentiment.

Opportunities (Pros):

Strong Backing: The continuous support of a giant exchange like Bybit instills confidence.
Layer-2 Technology: With the Mantle network, they have created real utility by offering a solution to Ethereum’s high transaction fees.
Treasury Security: The project’s cash reserves are far more robust than many of its competitors.

Risks (Cons):

Market Volatility: Like all cryptocurrencies, BIT (MNT) is pegged to Bitcoin’s movements.
Competition: There are formidable Layer-2 competitors such as Arbitrum, Optimism, and Polygon.
Governance Issues: The dominance of “whales” (holders of large amounts of tokens) in voting processes is a common criticism of DAO structures.

BitDAO’s Legacy and Future

To summarize; BitDAO (BIT) began as one of the most ambitious community experiments in cryptocurrency history. By managing billions of dollars in funds in a decentralized manner, it proved that the future of finance could be shaped by communities rather than banks.

Although it continues its journey today as Mantle, the foundations laid by BitDAO continue to nourish the ecosystem through Ethereum scalability solutions, gaming sector investments, and academic research. If you believe that blockchain technology is not just about “trading” but represents a serious revolution in technology and governance, the BitDAO (Mantle) ecosystem is a structure that should definitely be on your radar.