A community member within the Mantle decentralized autonomous organization (DAO) has initiated a discussion proposing to prevent the defunct FTX exchange and Alameda Research from exchanging their $43 million worth of BitDAO (BIT) tokens for Mantle (MNT) tokens.

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This proposition dates back to November 2, 2021, when BitDAO exchanged 100 million BIT with Alameda for more than 3,300,000 FTX tokens (FTT). The exchange was accompanied by an agreement to hold each other's tokens until November 2, 2024.

However, following the collapse of FTX in 2022, BitDAO suspected Alameda of selling the tokens, resulting in a precipitous decline in the value of BIT. Former Alameda CEO Caroline Ellison denied any involvement in the token's devaluation.

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Months later, the BitDAO community proposed the integration of the BitDAO ecosystem, with Mantle as its product and BitDAO functioning as its governance instrument. On May 12, community member Cateatpeanut initiated a governance vote to merge both under the Mantle brand, permitting BIT holders to exchange their tokens for MNT. The proposal was approved on May 19 with substantial community support.

On August 17, the BIT tokens held by Alameda resurfaced as a topic of discussion among Mantle community members.

Cateatpeanut argued that FTX Group's BIT should not be converted to MNT automatically, citing "various disqualifying factors." After emphasizing that there is no "guaranteed right of migration" for tokens, the community member introduced the proposal.

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The proposal includes a request for the development of a new MNT migration smart contract with the capacity to prevent the automated migration of FTX-owned tokens. In addition, the community member mentioned that the on-chain migration contract had been temporarily halted pending the vote and discussion.