šØ Threshold Proposes Merger with WBTC to Prevent Takeover by Justin Sun šØ
The DeFi protocol Threshold has proposed a merger between its Bitcoin wrapper token, tBTC, and Wrapped Bitcoin (WBTC) in response to concerns about a potential takeover by the controversial crypto figure Justin Sun. The proposal, introduced on August 29, aims to protect WBTC from the perceived risks associated with Sun's involvement following BitGo's recent partnership with BiT Global.
Threshold's plan would replace WBTCās centralized custody model with a decentralized one, managed by the Threshold DAO. This would ensure more secure and transparent management of WBTC. The proposal also includes deprecating tBTC, allowing holders to redeem their tokens 1:1 for WBTC or native BTC.
The involvement of Justin Sun, known for his controversial projects, has raised alarms within the crypto community, particularly regarding the security and transparency of WBTC reserves. MakerDAO is also considering restricting the use of WBTC as collateral for its DAI stablecoin due to these concerns.
