It’s Time to #saveWBTC and Make DeFi Stronger

Today's been kind of a big deal for the DAO, in case you missed it. Let's jump right in.

TL;DR: Threshold DAO member MacLane Wilkison (of the NuCypher team) has just proposed something big—a way to save WBTC by merging it with our decentralized tBTC. Why? Because the centralized nature of WBTC’s vault isn’t just a minor issue—it’s a ticking time bomb for DeFi. Moving WBTC to a community-owned protocol like ours could be the key to safeguarding the entire ecosystem.

Let’s Talk Reality: WBTC is massive. It’s one of the most liquid assets in crypto, integrated into just about every corner of DeFi. But here’s the kicker—it’s centralized. BitGo controls it, and they’ve just announced a joint venture that involves none other than Justin Sun, a figure whose past actions have sent some serious shockwaves through the community. This has led to growing concerns about the future of WBTC and what it means for DeFi as a whole.

The Proposal (And Why You Should Care)

So, what’s our move? Simple—MacLane is proposing to take WBTC out of centralized hands and merge it with our decentralized, community-driven tBTC. This isn’t just a tweak; it’s a complete overhaul that keeps WBTC’s liquidity and integrations intact but puts the power back where it belongs—with the community.

We’ve laid out all the details in the forum post (which you should absolutely check out), including a plan to grant BitGo a significant stake in Threshold Network. This isn’t just about cutting them out—it’s about bringing them into a model that works better for everyone.

[Engage directly on the proposal on our forums.]

Why This Matters to You (Yes, You!):

Let’s be real—centralized assets like WBTC are a ticking time bomb for DeFi. When billions in value are controlled by a few, we’re exposed to catastrophic risks. A single corporate decision—whether driven by external pressures or opaque motives—could destabilize entire protocols, lock users out of their assets, and undermine the very principles of DeFi.

Recent developments around BitGo’s joint venture, especially with figures like Justin Sun involved, make these risks all too real. WBTC, one of the most liquid assets in crypto, is at risk of becoming a liability rather than a cornerstone of DeFi.

What You Can Do (And Why You Should):

This proposal isn’t just about fixing a problem; it’s about securing the future. By merging WBTC with tBTC, we ensure that control is decentralized, transparent, and aligned with the principles DeFi was built on. We’re building a safer, more resilient ecosystem—one where your assets are as secure as the protocols they power.

This is the world we’re striving for, and we need your voice in this conversation. Now is the time to take action and ensure that WBTC remains a strong, decentralized asset that serves the community—not the other way around.

The greater crypto community is noticing, too:

People are already talking. Both news.bitcoin.com and The Block have jumped on this story within hours of the proposal dropping, as well as Cointelegraph, Protos, DL News, AMB Crypto, Crypto Slate, Cryptopolitan, and The Crypto Times. The word is out, and the community is watching closely. Let’s make sure we’re leading the charge, not just reacting to it.

Join the conversation and help shape the future of WBTC. Dive into the details on our forum and weigh in on Twitter where the discussion is heating up.

The Nuts and Bolts: What’s Actually Being Proposed

Alright, let’s break down the proposal so you know exactly what’s on the table:

Token Creation and Grant to BitGo

• What’s Happening: Threshold DAO plans to mint an additional 1.655 billion T tokens. This isn’t just for show—it’s a strategic move to bring BitGo into the fold.

• Why It Matters: This grant would make BitGo the largest holder of T tokens, with a stake worth approximately $36.4 million at today’s price of $0.022 per T. The idea here is to align BitGo’s interests with those of the community, giving them a significant stake in a decentralized model that benefits everyone.

The Proposed Merger

Stage 1: Merchant Privileges & DAO Control

• Threshold would gain merchant privileges for WBTC, meaning we’d handle the minting and redeeming process. Other merchants would be phased out, and control functions (like the ability to freeze assets) would be transferred to the Threshold DAO.

• This stage also includes a crucial step: disabling new tBTC minting. Instead, the existing tBTC supply would be redeemable 1:1 for WBTC, maintaining the bridge’s decentralization.

Stage 2: Migration to Decentralized Custody

• Here’s where the heavy lifting happens. The WBTC TVL (Total Value Locked) would be gradually migrated to Threshold’s decentralized custody. This process would be done in chunks, ensuring security at every step.

• Deposits would be spread across multiple wallets to maintain forward security, meaning the entire process is designed to be as bulletproof as possible.

Fallback Plan

If BitGo decides not to play ball and goes ahead with their new custody arrangement, we’ve got a Plan B. The minted T tokens could be used to help offboard WBTC safely from the DeFi ecosystem. This could involve covering user fees for redeeming WBTC, or even subsidizing other protocols as they migrate away from WBTC. The exact plan would be fine-tuned by the Threshold Treasury Guild, but the goal would remain the same: protect the ecosystem and ensure a smooth transition.

Additional Resources

• Website: Threshold.network

• Threshold dApp: tBTC Dashboard

• Discord: Threshold

• Twitter: Threshold

• Threshold Notion

• Threshold Github

• Threshold Reddit

• Threshold Telegram

What do you think?

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You can also hop into the Threshold Network discord and get involved. If you’d like to join the Threshold Marketing Guild go to the #claim-a-role channel at the top of the discord and select the emoji, which will open the guild channels to you (the Integrations and Treasury guilds are available there, too).