{"id":37172,"date":"2024-09-03T21:12:15","date_gmt":"2024-09-03T21:12:15","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/threshold-community-proposes-merger-to-safeguard-wbtc-amid-growing-concerns\/"},"modified":"2024-09-03T21:12:15","modified_gmt":"2024-09-03T21:12:15","slug":"threshold-community-proposes-merger-to-safeguard-wbtc-amid-growing-concerns","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/threshold-community-proposes-merger-to-safeguard-wbtc-amid-growing-concerns\/","title":{"rendered":"Threshold community proposes merger to safeguard WBTC amid growing concerns"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/Threshold-community-proposes-merger-to-safeguard-WBTC-amid-growing-concerns-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/Threshold-community-proposes-merger-to-safeguard-WBTC-amid-growing-concerns-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/Threshold-community-proposes-merger-to-safeguard-WBTC-amid-growing-concerns-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/Threshold-community-proposes-merger-to-safeguard-WBTC-amid-growing-concerns-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Threshold community proposes merging tBTC with WBTC.<\/li>\n<li>The proposal is driven by concerns over WBTC\u2019s stability due to Justin Sun\u2019s involvement.<\/li>\n<li>According to the proposal, BitGo will receive T tokens, becoming a major stakeholder in Threshold Network.<\/li>\n<\/ul>\n<p>In a strategic move to protect the future of Wrapped Bitcoin (WBTC), a proposal dubbed \u201c#saveWBTC \u2013 a merger with Threshold\u2019s tBTC\u201d has been put forward to merge the decentralized tBTC token of Threshold with BitGo\u2019s WBTC.<\/p>\n<p>The proposal, currently under discussion on <a href=\"https:\/\/forum.threshold.network\/t\/savewbtc-a-merger-with-thresholds-tbtc\/923\">Threshold\u2019s forum page<\/a>, comes in response to rising concerns within the crypto community regarding WBTC\u2019s stability following BitGo\u2019s <a href=\"https:\/\/blog.bitgo.com\/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global-expansion-plan-2ea0623fa2c8\">partnership<\/a> with Hong Kong-based BiT Global, a company partly owned by Justin Sun, founder of the Tron ecosystem.<\/p>\n<h2>Unease with Justin Sun\u2019s involvement with WBTC<\/h2>\n<p>The partnership has raised alarms due to Sun\u2019s controversial track record, with past incidents of misappropriating collateral. This unease has already led major DeFi protocols like MakerDAO to limit their exposure to WBTC, halt its use as collateral, and consider fully offboarding the asset.<\/p>\n<p><a href=\"https:\/\/coinjournal.net\/aave\/what-is-aave\/\">Aave<\/a>, another significant player in the DeFi space, is also closely monitoring the situation.<\/p>\n<h2>The Threshold, WBTC merger proposal<\/h2>\n<p>The merger proposal seeks to replace WBTC\u2019s centralized custody and merchant-based mint and burn model with its decentralized and permissionless mint\/redeem mechanism. This transition aims to ensure the safety and stability of the underlying collateral, reassuring users and protocols reliant on WBTC.<\/p>\n<p>The plan involves granting Threshold\u2019s DAO merchant privileges for WBTC while disabling tBTC minting, allowing existing tBTC holders to redeem WBTC at a 1:1 ratio.<\/p>\n<p>As part of the proposal, BitGo would receive a grant of T tokens, making it the largest stakeholder in the Threshold Network.<\/p>\n<p>The merger would be implemented in stages to ensure a seamless transition, with a fallback plan to offboard WBTC safely if the proposal is declined.<\/p>\n<p>By combining WBTC\u2019s established user base and liquidity with tBTC\u2019s decentralized technology, Threshold aims to preserve WBTC\u2019s role in the DeFi ecosystem, ensuring that the concerns over BiT Global\u2019s involvement do not destabilize the broader market.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/threshold-community-proposes-merger-to-safeguard-wbtc-amid-growing-concerns\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Threshold community proposes merging tBTC with WBTC. The proposal is driven by concerns over WBTC\u2019s stability due to Justin Sun\u2019s involvement. According to the proposal, BitGo will receive T tokens, becoming a major stakeholder in Threshold Network. In a strategic move [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":37173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/37172"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=37172"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/37172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/37173"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=37172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=37172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=37172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}