Bitcoin DeFi protocol Threshold releases proposal to merge tBTC and WBTC.
Powered by ChatGPTForesight News reported that the Bitcoin DeFi protocol Threshold has proposed to merge tBTC with WBTC. According to the plan, BitGo will become the 'largest holder' of Threshold $T tokens and will also control the minting and burning mechanisms of WBTC. The proposal suggests an additional issuance of 1,655,250,000 $T tokens (currently valued at approximately 36 million USD), increasing the supply by 15%, with these tokens subsequently belonging to BitGo. BitGo will then transfer the management authority of $WBTC to Threshold DAO. Threshold will also disable the minting of tBTC, which can be redeemed for $WBTC at a 1:1 ratio. MacLane Wilkison, co-founder of NuCypher, stated that if the proposal is rejected, Threshold can still issue additional $T tokens to help offset the costs of transitioning the protocol to assets such as tBTC or cbBTC proposed by Coinbase.