According to The Block's report, cryptocurrency exchange Bybit-backed layer-2 network Mantle Network's member FTX suggested that BIT tokens held by FTX should not be automatically converted to MNT tokens.
BitDAO merged under the name “Mantle” in recent months. In this merger, the automatic conversion of BIT tokens to Mantle (MNT) was agreed upon.
After this decision, the conversion of BIT tokens held by FTX into MNT came to the fore.
At this point, a Mantle community member made a new proposal, arguing that FTX's BIT tokens should not be converted to MNT.
The proposal proposed by community member Cateatpeanut states that BIT tokens held by the bankrupt FTX Group should not be eligible for automatic conversion due to its bankruptcy, while also includes no right of transition from BIT to MNT.
Noting that the community members also participated in the proposal proposed by the community member Cateatpeanut, he said that the existing contract should be changed and a new smart contract should be introduced that prevents the BIT tokens held by FTX from being automatically converted to MNT.
This offer is based on an agreement with Alameda Research on November 2, 2021, in which BitDAO traded 100 million BIT tokens for 3.4 million FTX tokens (FTT).
The present value of MNT tokens, which corresponds to 100 million BIT tokens, is equivalent to 43 million dollars. In this contract, the parties committed not to mutually sell the tokens they exchanged for three years, until November 2, 2024. However, rumors that Alameda Reasech sold its BIT tokens in 2022 were widely spoken.
*Not investment advice.
