Threshold Proposes $36.5M WBTC Merger with BitGo for Stability

Aug 29, 2024, 07:55 PM

Threshold Network has proposed a merger with Wrapped Bitcoin (WBTC) to save and enhance its stability. The proposal involves minting approximately $36.5 million in Threshold's T tokens, representing 15% of its supply, which will be vested to BitGo. In exchange, BitGo, along with existing merchants and the WBTC DAO, will transfer mint, redeem, and freeze privileges of WBTC to Threshold. This move aims to protect decentralized finance (DeFi) protocols by ensuring the stability of WBTC. The proposal also suggests disabling tBTC minting and making WBTC/tBTC redeemable at a 1:1 ratio. BitGo is expected to manage WBTC minting and control Threshold's T tokens, positioning itself as the largest holder of these tokens.