Threshold Network Launches DAO Restructuring and T Token Reinvestment to Optimize Ecosystem Growth
Threshold Network officially announced the completion of the DAO governance restructuring process, and launched a long-term reinvestment strategy into the T token – marking an important milestone in line with the directions in the TIP-103 Threshold Improvement Proposal.
This move comes after tLabs took on the role of leading the development and expansion of tBTC – the Bitcoin standard for DeFi of the Threshold network.
Optimizing governance, improving operational efficiency
Through TIP-100 and TIP-98, the Threshold DAO has undergone a comprehensive restructuring, focusing on the goal of building a flexible, sustainable and more market-oriented operating system.
The key to the restructuring is the offloading of governance roles from the DAO, shifting many of the key responsibilities – including product development, integration, and marketing – to the dedicated team at tLabs.
tLabs is now the lead developer of tBTC and driving DeFi integration across multiple chains, paving the way for scaling and making tBTC more accessible to users across the entire Web3 ecosystem.
In addition, a new Threshold Committee has been established to take over the roles of the previous governing bodies. The committee consists of 9 members, including 6 part-time positions and 3 volunteer positions, ensuring that the 5/9 multi-signature security model is maintained effectively.
Five other essential contributor roles have also been retained, including technical support, treasury management, communications, project management, and incentive reporting oversight. All of them operate at reasonable remuneration and with optimized time commitments.
Financial Consolidation and Elimination of Token Selling Pressure
The restructuring has resulted in positive financial results, reducing annual operating costs to $602,000, saving approximately $1.1 million per year. At the same time, the suspension of the tBTC staking rewards program has saved the DAO approximately $8.5 million per year.
This financial efficiency has allowed the DAO to stop selling T tokens in the treasury, instead buying back T tokens to support the price and consolidate long-term value.
The DAO has now completed the first buyback of approximately 30 million T tokens, worth 5.8 tBTC, in accordance with the strategy established in TIP-54.
Based on the close relationship between T tokens and tBTC, the DAO expects this to initiate a virtuous cycle of growth, where TVL (Total Value Locked) increases, leading to increased demand, which in turn increases the value of T and drives deeper participation from the community.
Currently, the DAO holds approximately 420 million T tokens (worth ~$7 million at market price), along with an asset reserve of $8-9 million in tBTC, ETH, and stablecoins – ensuring the ability to operate for 2-3 years without issuing new tokens.
About Threshold Network
Threshold Network is the platform that provides the infrastructure for tBTC – the most trusted BTC bridge for DeFi. Since its launch, tBTC has processed over 32,000 BTC, equivalent to $2.7 billion, cementing its position as the leading solution for bringing Bitcoin liquidity to DeFi without sacrificing transparency and decentralization.
Unlike wrapped BTC or derivatives that rely on third parties, tBTC maintains the ability to redeem directly back to native Bitcoin, without staking, without centralized custody – just pure BTC available for use in the decentralized finance space.
The T token is central to Threshold’s operating mechanism, acting as a value storage and distributing profits from bridge fees through periodic buyback programs.