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Threshold Network’s proposal to buy Wrapped Bitcoin (WBTC) from BitGo represents a significant step towards promoting decentralization in the cryptocurrency-based financial system. According to the proposal, Threshold is offering to provide $36.4 million of its native T tokens to buy WBTC from BitGo.
The goal of this move is to transform WBTC from a centralized custody structure to a decentralized model by integrating WBTC with Threshold Network’s Bitcoin Bridge tBTc.
This integration of WBTC and tBTC will make the network more robust and increase its adoption in the market, as it will allow users to transact with Bitcoin in a completely decentralized context, enhancing security and transparency.
Additionally, the proposal includes minting an additional amount of T tokens as a bonus to BitGo, making it one of the largest contributors to Threshold Network.
This move would also leverage the reputation and high market cap of WBTC to drive adoption of tBTC, which is a bridge between the traditional Bitcoin network and the decentralized finance (DeFi) ecosystem.