Threshold Network, a leader in decentralized Bitcoin bridging technology, has unveiled a new fee waiver program tied to staking its native $T tokens. This initiative offers users the opportunity to stake $T tokens to unlock reductions or complete waivers on fees charged during tBTC bridge redemptions, the platform's process for converting tBTC back to Bitcoin.
Traditionally, minting Bitcoin into tBTC has been free, consistent with the governance framework. However, redeeming tBTC has attracted fees up to 20 basis points, intended to maintain the security and decentralization of the bridge infrastructure. By enabling staking-related fee waivers, Threshold Network aims to alleviate these costs for frequent bridge users.
Through this staking model, the volume of $T tokens locked directly corresponds to the extent of fee reductions achievable. The more substantial the stake, the greater the waiver capacity, allowing users to significantly lower or even eliminate redemption fees and other qualifying charges.
For regular participants in Bitcoin bridging activities, the financial benefits include lower cumulative transaction expenses, enhanced opportunities for arbitrage between BTC and tBTC, and generally tighter market pricing supported by increased liquidity. This system also preserves established custody, settlement, and operational procedures.
According to stakeholders within Threshold Network, the addition of staking as a mechanism to improve protocol usage underlines a broader utility for $T holders, extending beyond governance or network security roles to concrete financial advantages.
One of the driving motivations behind this development is the desire to maintain a close price parity between tBTC and native Bitcoin. Even a relatively modest redemption fee of 20 basis points can introduce a discount on tBTC in secondary markets, impacting the asset's peg. By reducing or waiving those fees for active stakers, Threshold Network enhances arbitrage efficiency, supporting more stable and efficient Bitcoin liquidity within decentralized finance ecosystems.
Early feedback and data reflect the effectiveness of the fee waiver program, demonstrating improved price stability for tBTC without compromising the protocol’s conservative security model.
Mechanically, the waiver is determined over a 30-day rolling window, with each 100,000 $T tokens staked providing an offset against 0.001 tBTC in eligible fees. Complete fee waivers are attainable by staking proportionally larger quantities. The structure maintains the current free status of tBTC minting while applying waivers solely to redemption fees. Unstaking imposes a 30-day delay, and governance privileges remain unchanged by participation in this program.
tBTC’s recent growth and onchain performance have surpassed many other Bitcoin wrappers, a trajectory supported by its transparent framework and consistent user engagement. The introduction of staking-based fee waivers aligns with Threshold Network's aim to enhance economic and operational efficiency in bringing Bitcoin liquidity onto multiple blockchains.
The update particularly benefits users deeply involved in Bitcoin infrastructure activities, including frequent bridgers, arbitrage traders, market makers, long-term $T holders, and institutional investors seeking transparent and capital-efficient Bitcoin access. Even non-staking participants may experience indirect advantages resulting from improved liquidity and pricing consistency across tBTC markets.
While staking $T is optional, eligible users can engage via decentralized exchanges or major centralized exchanges where $T is listed. The process for staking is accessible through Threshold Network’s official application portal.
Threshold Network supports tBTC, promoting Bitcoin liquidity transfer across blockchains without compromising settlement finality. Utilizing threshold cryptography, the protocol ensures trust-minimized and censorship-resistant Bitcoin bridging, maintaining a direct link to native Bitcoin settlement.