DeFi Protocol Threshold Proposes Merger with WBTC to Prevent Takeover by Justin Sun
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The decentralized finance (DeFi) protocol Threshold has proposed a merger between its Bitcoin wrapper token, tBTC, and Wrapped Bitcoin (WBTC) to prevent a potential takeover by Justin Sun.
The proposal, introduced on August 29, aims to safeguard WBTC following concerns over a possible shift in control of the widely used Bitcoin wrapper.
The concerns stem from a recent announcement by BitGo, the custodian managing the Bitcoin reserves backing WBTC.
On August 9, BitGo revealed plans for a partnership with BiT Global, a Hong Kong-based cryptocurrency exchange.
The partnership is designed to diversify WBTC’s presence beyond the United States.
However, it also involves BiT Global taking partial control of the multisignature wallet that holds the Bitcoin reserves for WBTC.
The involvement of Justin Sun, a controversial figure in the crypto space, has raised alarms within the community, with fears of potential misappropriation of collateral associated with his affiliated projects.
In response, Threshold’s proposal suggests replacing WBTC’s current centralized custody and merchant-based minting and burning model with Threshold’s decentralized custody and permissionless mint/redeem mechanism.
The change would effectively transfer control of WBTC to the Threshold decentralized autonomous organization (DAO), which claims to offer a more secure and transparent management model.
I'm not a member of the DAO/holder of T tokens, but I support @TheTNetwork efforts to decentralize WBTC and bring the associated bitcoin into a trustless two way
Read more on cryptonews.com
