Decentralized finance (DeFi) protocol Threshold has proposed a merger between its Bitcoin wrapper token, tBTC, and Wrapped Bitcoin (WBTC) in anticipation of a potential takeover by Justin Sun.

The proposal, introduced on August 29, 2024, aims to protect WBTC following concerns over a potential change of control of the widely used Bitcoin wrapper.

The concerns stem from a recent announcement by BitGo, the custodian entity that manages the Bitcoin reserves backing WBTC.