The Mantle decentralized autonomous organization (DAO) paused the ongoing token migration to stop the collapsed FTX exchange and Almeda Research from converting $43 million worth of BitDAO (BIT) tokens to Mantle (MNT) tokens.
A community member of the Mantle started the discussion with participants about stopping FTX from migrating BIT to MNT tokens.
BitDAO swapped 100 million BIT tokens in exchange for 3.3 million FTX tokens with Alameda on Nov. 2, 2021. As part of the trade, both parties publicly agreed to hold each other’s tokens for three years, that is till Nov. 2, 2024.
During the fallout of FTX in 2022, BitDAO suspected that Alameda dumped the tokens and demanded to provide a proof of hodling 100M BIT. After a few months, the BitDAO community proposed the unification of the BitDAO ecosystem, which passed with the overwhelming support of its community on May 19.
The Mantle community is still concerned with the BIT tokens held by Alameda, which became the topic of discussion on August 17. The conversion of FTX Group’s BIT to MNT should not be done automatically as there are many disqualifying factors, as argued by Cateatpeanut.
The community member demanded the new MNT migration smart contract, which will be able to stop the automatic migration of FTX-owned tokens. “The on-chain migration contract has been paused until the conclusion of this discussion and vote,” was also mentioned by a community member.
