MonkeDAO, a community-driven Non-Fungible Token (NFT) project on the Solana blockchain, has taken a major step in its treasury strategy. The project has made history by becoming the first decentralized autonomous organization (DAO) to add Bitcoin (BTC) to its treasury. The DAO announced earlier today that it had purchased zBTC, a Bitcoin-backed token on Solana, as part of its long-term financial strategy. This decision helps MonkeDAO diversify its assets while looking at new Bitcoin-based decentralized finance (DeFi) opportunities within the Solana ecosystem. The DAO aims to secure its future by holding Bitcoin as zBTC while benefiting from Solana’s fast and low-cost transactions. What is zBTC? zBTC is a 1.1 Bitcoin-pegged token primarily built on the Solana network asset. The new token operates through a decentralized and trustless system, different from wrapped Bitcoin (wBTC), which depends on centralized custodians. The token is issued by APOLLO, a project focused on bringing Bitcoin liquidity to the Solana protocol. zBTC is secured by the Zeus Network, which uses a decentralized validator system to ensure trust and transparency. zBTC also relies on a special verification method called simple payment verification (SPV) sidechains to maintain its Bitcoin peg. With zBTC, Bitcoin holders can use their assets within Solana’s DeFi ecosystem. They can lend, borrow, trade, and earn a yield on decentralized exchanges (DEXs) without relying on Bitcoin’s main blockchain. Why MonkeDAO Chose zBTC MonkeDAO is more than just an NFT project. It is a decentralized organization that makes collective financial decisions. As announced, the newly acquired zBTC will be stored in MonkeDAO’s treasury, known as the Strategic Monke Reserve (SMR). This move is designed to strengthen MonkeDAO’s financial future and aligns with its belief in Bitcoin’s long-term value potential. According to a statement shared on X, MonkeDAO emphasized that this decision was based on growth and stability, not speculation. Notably, the move is small compared to Bitcoin-focused companies like Strategy . Nevertheless, it shows a growing interest in Bitcoin within the Solana ecosystem. Bitcoin DeFi (BTCFi) is Growing on Solana MonkeDAO’s move reflects a larger trend in the crypto industry. Bitcoin DeFi (BTCFi) is gaining momentum, with more projects finding ways to use Bitcoin beyond simple storage. Ethereum has long dominated the DeFi sector, but the Solana network is emerging as a strong competitor due to its speed and low transaction costs. The integration of Bitcoin into Solana’s ecosystem shows that Bitcoin can be more than just digital gold; it can be actively used in financial applications. MonkeDAO’s adoption of zBTC could inspire other DAOs and projects to make similar moves, further expanding Bitcoin’s role in decentralized finance. The post MonkeDAO Becomes First DAO to Hold Bitcoin Reserve appeared first on TheCoinrise.com .
