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

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A group member began a dialogue amongst members within the Mantle decentralized autonomous group (DAO), proposing to limit the collapsed FTX alternate and Alameda Analysis from changing their BitDAO (BIT) tokens value $43 million to Mantle (MNT) amid the continued token migration course of. 

Group dialogue on stopping FTX from changing its BIT tokens. Supply: Mantle

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

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

On Aug 17, the matter of the BIT tokens held by Alameda grew to become a topic of debate for Mantle group members. Cateatpeanut argued that FTX Group’s BIT shouldn’t be mechanically transformed to MNT due to “varied disqualifying elements.” Based on the group member, there isn’t a “assured proper of migration” for the tokens, and he then initiated the proposal.

Throughout the proposal, the group member requested to implement a brand new MNT migration good contract that is ready to prohibit the automated migration of FTX-owned tokens. The group 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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