The Proposal’s Genesis
A member of the Mantle decentralized autonomous organization (DAO) reignited past controversies by suggesting a restriction on the now-collapsed FTX exchange and Alameda Research. The proposal? Stop them from converting their $43 million worth BitDAO (BIT) tokens into Mantle (MNT) tokens.
Rooted in a Past Agreement
On Nov. 2, 2021, a trade took place between BitDAO and Alameda. BitDAO swapped 100 million BIT tokens in exchange for 3.3 million FTX tokens (FTT) from Alameda. Both entities promised to retain their newly acquired tokens until Nov. 2, 2024.
Nevertheless, the commitment was brought into question following the FTX fallout in 2022. BitDAO alleged that Alameda might have sold the tokens off prematurely, causing a significant dip in BIT’s market value. Caroline Ellison, Alameda’s ex-CEO, denied any role in the token’s sharp fall.
The Mantle Integration
After these incidents, the BitDAO community pondered a merger. They proposed incorporating the BitDAO ecosystem, positioning BitDAO as its governance entity and Mantle as its flagship product. On May 12, Cateatpeanut, a community member, initiated a governance vote to unite both entities under the Mantle brand. This move would allow BIT holders to exchange their tokens for MNT. The community gave a nod to this proposal on May 19, showing overwhelming support.
Tensions rose again on Aug. 17. The BIT tokens in Alameda’s possession became a point of contention within the Mantle community.
Leading the charge, Cateatpeanut argued that the FTX Group’s BIT tokens shouldn’t seamlessly convert into MNT. The member cited multiple “disqualifying factors” behind this stance. Most importantly, there is no inherent “right of migration” for these tokens. Acting on this belief, the member formally introduced the restricting proposal.
This proposal isn’t just symbolic. It calls for a new MNT migration smart contract—specifically engineered to block the automatic transition of BIT tokens owned by FTX. For now, the on-chain migration process is on hold, awaiting the community’s deliberation and eventual vote.
