Mantle pauses token migration to stop FTX converting $43M in BIT tokens to MNT


A neighborhood member began a dialogue amongst individuals in the Mantle decentralized autonomous group (DAO), proposing to prohibit the collapsed FTX change and Alameda Research from converting their BitDAO (BIT) tokens value $43 million to Mantle (MNT) amid the continuing token migration course of. 

Community dialogue on stopping FTX from converting its BIT tokens. Source: Mantle

On Nov. 2, 2021, BitDAO swapped 100 million BIT with Alameda in change for over 3.3 million FTX tokens (FTT). The commerce got here with a public dedication to maintain one another’s tokens for a span of three years, which is till Nov. 2, 2024. However, amid the FTX fallout in 2022, BitDAO suspected Alameda of dumping the tokens and inflicting BIT to plummet. At the time, former Alameda CEO Caroline Ellison denied their involvement in the dump. 

Related: BitDAO’s Mantle Core team proposes $200M for Web3 fund

Fast ahead just a few months and the BitDAO neighborhood proposed the unification of the BitDAO ecosystem, which had BitDAO as its governance arm and Mantle as its product. On May 12, neighborhood member “Cateatpeanut” initiated a governance vote to unify each below the Mantle banner, which might additionally imply that BIT holders would have their tokens transformed into MNT. On May 19, the proposal to unify Mantle and BitDAO passed with overwhelming support from its neighborhood.

On Aug. 17, the matter of the BIT tokens held by Alameda turned a topic of dialogue for Mantle neighborhood members. Cateatpeanut argued that FTX Group’s BIT shouldn’t be routinely transformed to MNT due to “various disqualifying factors.” According to the neighborhood member, there is no such thing as a “guaranteed right of migration” for the tokens, and so they then initiated the proposal.

Within the proposal, the neighborhood member requested to implement a brand new MNT migration sensible contract that’s ready to prohibit the automated migration of FTX-owned tokens. The neighborhood member additionally highlighted that the on-chain migration contract has been paused till the conclusion of the dialogue and the vote.

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