MonkeDAO, the Solana-based non-fungible token (NFT) project which is owned by its community, has made a significant move by becoming the first decentralized autonomous organization (DAO) to hold a Bitcoin reserve. The announcement, made on March 28, explains that this strategic move was facilitated through the acquisition of the APOLLO on Solana token zBTC.
The zBTC token, recently launched and native to Solana, is pegged on a 1:1 ratio to Bitcoin. In adopting this token for its treasury reserve, MonkeDAO has become the first DAO to do so. The APOLLO team behind the zBTC token has stated that it offers BTC on-chain, not bridged or wrapped, but permissionless. This means that holders can leverage this token to participate in the decentralized finance (DeFi) ecosystem on Solana, thereby earning on-chain yield.
MonkeDAO has indicated that it will be adding the zBTC token to its treasury. The single zBTC purchased will be directed into the Strategic Monke Reserve (SMR). The SMR forms part of MonkeDAO’s treasury reserve strategy aimed at fostering financial sustainability within the community.
In addition to this, the adoption of zBTC underscores MonkeDAO’s commitment to a permissionless ecosystem for Bitcoin DeFi, or BTCFi. This system allows Bitcoin holders to engage in DeFi on Solana through lending, borrowing, and yield farming activities.
MonkeDAO stated on platform X that, “The SMR is our commitment to long term growth and the addition of zBTC diversifies [and] strengthens our current pool of native assets.” This strategic move may not be on the level of Strategy, formerly known as MicroStrategy, but it certainly indicates a growing confidence in Bitcoin.
In addition to the 1:1 peg with Bitcoin, APOLLO asserts that zBTC utilizes a trustless two-way peg for security, achieved through a simple payment verification sidechain. The token also taps into a decentralized validator set on the Zeus Network.
The ultimate goal of Apollo and Zeus Network in their role in BTCFi is to tap into the “trillions in value” on the Bitcoin network. They see the potential to unlock Bitcoin from its somewhat underutilized liquidity, given that many hodlers’ coins are idle in wallets, and view this as a significant opportunity to stimulate growth and strengthen use cases. The first validation of a Bitcoin transaction on Solana by Zeus Network took place in December 2024.
This strategic move by MonkeDAO throws a spotlight on the growing potential of DeFi and NFTs, and their increasing integration with established cryptocurrencies like Bitcoin. It underlines the fluidity and innovation that continues to define the crypto space, and sets the stage for more DAOs to potentially follow suit.
