The native asset of a Bitcoin DeFi project, T, surged over 55% this week due to a restructuring announcement. The Threshold Network aims to save about $1.1 million annually by changing its DAO structure and halting staking rewards for tBTC. T token purchases and increased sustainability are expected to enhance overall value and ecosystem engagement.
The native asset of a Bitcoin-focused decentralised finance (DeFi) project has seen a remarkable increase of over 55% this week. This surge occurs amid a generally sluggish crypto market. Threshold Network operates tBTC, a decentralised wrapped Bitcoin, utilised across various DeFi platforms.
Currently, the native token T is priced at $0.0223, a significant rise from $0.0143 a week prior, marking an approximate 48% increase in just the last 24 hours. Carried by a recent announcement from Threshold Network, the price performance links directly to a proposed restructuring of its decentralised autonomous organisation (DAO) aimed at reducing operational costs by about $1.1 million annually.
The project anticipates over $8.5 million in yearly savings from discontinuing tBTC staking rewards, fostering greater profitability. The DAO’s improved cost-efficiency now permits halting treasury sales of T tokens, allowing strategic reinvestments. The treasury will continue to accumulate tBTC through bridge fees and T tokens via buybacks, according to TIP-54.
Threshold has implemented its initial acquisition, purchasing approximately 30 million T tokens for 5.8 tBTC. Due to the close economic relationship between T and tBTC, this evolution is predicted to instigate a positive cycle of growth, with enhanced Total Value Locked (TVL) and bridge activity boosting T’s value, which in turn encourages further engagement and sustains the ecosystem’s growth.
