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Mantle halts token migration to prevent FTX from changing $43 million in BIT tokens to MNT.
A participant initiated a conversation within the Mantle decentralized autonomous organization (DAO), suggesting that the defunct FTX exchange and Alameda Research should be prohibited from converting their BitDAO (BIT) tokens valued at $43 million to Mantle (MNT) during the ongoing token migration process.
Community discussion on preventing FTX from converting its BIT tokens. Source: Mantle
On November 2, 2021, BitDAO exchanged 100 million BIT with Alameda for over 3.3 million FTX tokens (FTT). This transaction included a public pledge to retain each other’s tokens for a duration of three years, lasting until November 2, 2024. However, following the FTX crisis in 2022, BitDAO grew suspicious that Alameda was offloading the tokens, leading to a decline in BIT’s value. At that time, former Alameda CEO Caroline Ellison refuted any involvement in the sell-off.
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Several months later, the BitDAO community suggested the consolidation of the BitDAO ecosystem, which included BitDAO as its governance entity and Mantle as its product. On May 12, community member Cateatpeanut proposed a governance vote to merge both under the Mantle name, which would also entail converting BIT holders’ tokens into MNT. On May 19, the proposal to unify Mantle and BitDAO received significant backing from the community.
On August 17, the issue of the BIT tokens owned by Alameda became a topic of debate among Mantle community members. Cateatpeanut contended that FTX Group’s BIT should not be automatically transitioned to MNT due to “various disqualifying factors.” The community member asserted that there is no “guaranteed right of migration” for the tokens and subsequently put forth the proposal.
Within the proposal, the community member requested the establishment of a new MNT migration smart contract designed to prevent the automatic migration of tokens owned by FTX. The community member also pointed out that the on-chain migration contract has been suspended until the discussion and voting process is completed.
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