PANews reported on August 30 that according to The Block, the decentralized financial protocol Threshold, which focuses on Bitcoin, is proposing to merge its wrapped Bitcoin version tBTC with WBTC. According to the plan, BitGo will become the "largest holder" of Threshold T tokens, and will also control the minting and destruction mechanism of WBTC to "ensure the continued stability of WBTC, the security of collateral, and the security of users and protocols that rely on it."
If the proposal submitted by NuCypher co-founder MacLane Wilkison is approved, Threshold will issue an additional 1,655,250,000 T tokens, which will increase the supply by 15%, or about $36 million, and these tokens will then belong to BitGo. After that, BitGo will transfer the token freezing, minting and redemption rights of WBTC to Threshold DAO. Threshold will also hold Bitcoin in multiple wallets and disable the minting of tBTC, which can be redeemed for WBTC at a 1:1 ratio. The market value of WBTC is about $9 billion, and there are about $200 million in tBTC in circulation.
Wilkison said: "This alternative would ensure the security and stability of the underlying collateral, give peace of mind to market participants and users of WBTC, and protect the many DeFi protocols that use the asset as collateral." It is unclear whether Threshold proposed the proposal to BitGo before publishing the idea. Wilkison said that if the proposal is rejected, Threshold can still issue additional T tokens to help share the cost of the protocol switching to assets such as tBTC or Coinbase's proposed cbBTC token.
It is reported that Threshold Network is a decentralized platform that connects Bitcoin to DeFi through a variety of services, including its own Bitcoin package version tBTC and the cross-chain token protocol Wormhole, which connects about 20 blockchains. It was created in 2022 by merging two similar protocols NuCypher and Keep Network.
