Mantle DAO Community Debates FTX Token Conversion Restrictions

The Proposal that Shook the Mantle Community

Recently, a community member launched a spirited discussion within the Mantle decentralized autonomous organization (DAO), suggesting a bold move: restricting the infamous FTX exchange and Alameda Research from converting their BitDAO (BIT) tokens, which are valued at a staggering $43 million, to Mantle (MNT) as the token migration process unfolds.

A Brief History of BIT and FTX

To put this proposal into context, let’s rewind to November 2, 2021. Back then, BitDAO struck a deal with Alameda exchanging a massive 100 million BIT for over 3.3 million FTX tokens (FTT). This wasn’t just casual trading; it came with a public commitment to hold on to each other’s tokens for three years—until November 2, 2024. However, as the dust settled from the FTX fallout in 2022, whispers of Alameda dumping the tokens began to circulate, sending BIT into a nosedive. Caroline Ellison, former CEO of Alameda, was quick to deny any wrongdoing.

The Rise of MNT

Fast forward to the aftermath of FTX’s collapse: the BitDAO community proposed a unification of its ecosystem in conjunction with Mantle. Community member “Cateatpeanut” kicked off a governance vote on May 12 to bring both entities under the Mantle name. On May 19, the community rallied in support, and the proposal was passed with resounding enthusiasm.

The Current Debate

On August 17, the topic resurfaced regarding the BIT tokens held by Alameda. Cateatpeanut asserted that the conversion of FTX Group’s BIT to MNT should not happen automatically due to “various disqualifying factors.” They emphasized that there’s no “guaranteed right of migration” for Alameda’s tokens. Hence, they initiated a proposal suggesting a new migration smart contract capable of halting the automatic conversion.

What’s Next for the Mantle Community?

The smart contract is currently on pause while the community debates the future of Alameda’s BIT tokens. The outcome of this discussion could shape the landscape of token migrations and governance in the mantle of decentralized finance.

In the end, whether to embrace or restrict FTX’s access to their tokens is a point fraught with tension and potential—much like the crypto market itself. Wondering whether banning certain participants from converting their tokens might lead to better security or ultimately put a damper on innovation? The Mantle community has some critical decisions ahead of them!