BitDAO, a new decentralized autonomous organization, is launching after a $230 million funding round led by billionaire venture capitalist Peter Thiel.
BitDAO announced its DAO launch on Tuesday in conjunction with completing a private sale from initial partners led by Thiel, Pantera Capital, Dragonfly Capital and Founders Fund.
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Other investors included billionaire hedge fund manager Alan Howard, Spartan Group, Jump Capital, Fenbushi and Kain 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 company specifically pledged a contribution of 2.5 basis points of its futures contracts’ trading volume to the BitDAO treasury, which is expected to generate over $1 billion per year based on this year's run rates, the DAO said.
BitDAO’s recurring contributions-powered treasury will be used to provide liquidity as well as to drive new protocols such as decentralized exchanges, lending and synthetics protocols.
Related: DeFi exchange dYdX raises $65M in Series C fundraiser
According to the announcement, BitDAO also plans to support blockchain projects through grants, and aid existing and emerging projects through token swaps.
A spokesperson for BitDAO told Cointelegraph that the DAO will hire both permanent and project-based teams, including advisers from Spartan and Dragonfly, and developers from Sushiswap.
The DeFi industry has seen a notable decline in recent months due to a major sell-off on the cryptocurrency markets. According to DeFi data provider DefiLlama, the market topped in mid-May at a total value locked (TVL) of around $158 billion. At the time of writing, DeFi TVL amounts to $128 billion.
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