Threshold Proposes Merger of tBTC and WBTC

According to Foresight News, the Bitcoin DeFi protocol Threshold has proposed a plan to merge tBTC with WBTC. Under this proposal, BitGo will become the largest holder of Threshold's T tokens and will also control the minting and burning mechanisms of WBTC. The plan suggests issuing an additional 1,655,250,000 T tokens, valued at approximately $36 million, increasing the supply by 15%. These tokens will be allocated to BitGo, which will then transfer the management of WBTC to Threshold DAO. Additionally, Threshold will disable the minting of tBTC, allowing tBTC to be redeemed for WBTC at a 1:1 ratio. MacLane Wilkison, co-founder of NuCypher, stated that if the proposal is rejected, Threshold could still issue additional T tokens to help cover the costs of transitioning the protocol to tBTC or other assets like Coinbase's proposed cbBTC.