Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»HACKING NEWS»Threshold Community Proposes Merger to Protect WBTC Amid Growing Concerns
HACKING NEWS

Threshold Community Proposes Merger to Protect WBTC Amid Growing Concerns

By Crypto FlexsSeptember 4, 20242 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Threshold Community Proposes Merger to Protect WBTC Amid Growing Concerns
Share
Facebook Twitter LinkedIn Pinterest Email
  • The Threshold community has proposed merging tBTC and WBTC.
  • This proposal stemmed from concerns about the stability of WBTC due to Justin Sun’s involvement.
  • According to the proposal, BitGo will receive T tokens and become a key stakeholder in the Threshold Network.

As part of a strategic move to secure the future of Wrapped Bitcoin (WBTC), a proposal has been put forward to merge Threshold’s decentralized tBTC token with BitGo’s WBTC, titled “#saveWBTC – Merge with Threshold’s tBTC.”

The proposal, currently being discussed on the Threshold forum page, comes as concerns grow within the cryptocurrency community about the stability of WBTC following BitGo’s partnership with BiT Global, a Hong Kong-based company partly owned by Tron ecosystem founder Justin Sun.

Concerns about Justin Sun’s participation in WBTC

This partnership has raised alarms due to Sun’s controversial past collateral embezzlement incidents. These anxieties have already led major DeFi protocols like MakerDAO to limit their exposure to WBTC, suspend its use as collateral, and consider offboarding the asset entirely.

Aave, another major player in the DeFi space, is also watching the situation closely.

Threshold and WBTC merge proposal

The merger proposal seeks to replace WBTC’s centralized custody and merchant-based minting and burning model with a decentralized, permissionless minting/redemption mechanism. This transition aims to ensure the safety and stability of the underlying collateral and provide peace of mind to users and protocols that rely on WBTC.

The plan involves granting Threshold’s DAO merchant rights for WBTC, while also disabling tBTC minting, allowing existing tBTC holders to redeem WBTC at a 1:1 ratio.

As part of this proposal, BitGo will be granted T tokens, making BitGo the largest stakeholder in the Threshold Network.

To ensure a smooth transition, the merger will be implemented in phases, and a fallback plan will be put in place to safely separate WBTC if the proposal is rejected.

Threshold aims to combine WBTC’s established user base and liquidity with tBTC’s decentralized technology to preserve WBTC’s role in the DeFi ecosystem and ensure that concerns about BiT Global’s participation do not destabilize the overall market.


Share this article

Category

Tags

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Re -creation attack in ERC -721 -Ackee Blockchain

August 8, 2025

Quantum advantage: Is the threat really?

August 6, 2025

Credix Hack adds $ 3.1 billion in defect loss in 2025, depending on Multisig Oblures Surge.

August 4, 2025
Add A Comment

Comments are closed.

Recent Posts

Did you miss the TRON ‘S (TRX) 100X? Ruvi AI (Ruvi)

August 9, 2025

Re -creation attack in ERC -721 -Ackee Blockchain

August 8, 2025

The New Bybit Web3 Is Here–Fueling On-Chain Thrills With $200,000 Up For Grabs

August 8, 2025

Stella (XLM) Eye 35% Rally and Ripple and SEC END 5 years legal battle

August 8, 2025

Builders Are Proving What’s Possible With CARV’s AI Stack

August 8, 2025

Caldera Announces Partnership With EigenCloud To Integrate EigenDA V2

August 7, 2025

Are Monero in danger? Five orphan blocks were found during the Cubic Mining War.

August 7, 2025

One Card To Seamlessly Bridge Web3 Assets And Real-World Spending

August 7, 2025

Coinbase’s USDC fee, encryption or other banks?

August 7, 2025

Protocol Update 001 -scale L1

August 7, 2025

As you challenge the mixed technology signal, OnDo Price Hovers challenges the August Bullish predictions.

August 7, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Did you miss the TRON ‘S (TRX) 100X? Ruvi AI (Ruvi)

August 9, 2025

Re -creation attack in ERC -721 -Ackee Blockchain

August 8, 2025

The New Bybit Web3 Is Here–Fueling On-Chain Thrills With $200,000 Up For Grabs

August 8, 2025
Most Popular

3 reasons why Pepe expects another 70% rise by July

June 12, 2024

Bitcoin prices are prepared for ‘70% to 80% ‘as they surge on Onchain Metrics and SPOT BTC ETF.

April 22, 2025

Solana’s chances of reaching $1K seem slim, but network fundamentals predict $190 SOL.

August 13, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.