Threshold Network Restructures for Profitability, Launches Strategic Reinvestment via T Token Buyback
New York, NY, April 17th, 2025,
Threshold Network is pleased to announce the restructuring of the Threshold DAO and a strategic reinvestment in T. This is in accordance with Threshold Improvement Proposal (TIP) 103.
TIP-103 called for a restructuring of the DAO based on an evaluation of responsibilities remaining within the DAO after the tLabs take over of tBTC development and growth.
Strategic Restructuring for Sustainable Growth
Threshold Network has initiated a strategic restructuring aimed at optimizing governance processes and improving operational efficiency. This initiative, formalized through Threshold Improvement Proposal TIP-100—which builds upon the framework introduced in TIP-98—reflects the project’s focus on long-term sustainability and more targeted implementation strategies.
The most notable change under TIP-100 involves a significant reduction in DAO-assigned roles, with many responsibilities transitioned to a dedicated team at tLabs. Among these shifts, the handover of tBTC development to this team is intended to facilitate more focused advancement of the protocol and improve alignment with current market demands.
tLabs will also take over the responsibilities of Marketing and Integrations. This focused approach enables tLabs to rapidly roll out new features, forge robust DeFi integrations, and scale tBTC across multiple blockchains.
These changes are accompanied by a consolidation of governance roles within the DAO. A newly formed Threshold Committee, with six part-time paid members and three volunteer seats to maintain the 5-of-9 multisig security threshold, takes over the responsibilities of the former Treasury Guild and Council.
Five essential part-time contributor roles also remain. These cover treasury operations, tech support, communications, project management, and incentive reporting, all with optimized time commitments and hourly rates.
Stronger Financial Positioning
The restructuring has improved the protocol’s financial standing. It reduced annual operational costs by approximately $1.1 million, bringing the total cost of governance and contributor roles to $602,000 per year.
Added to the more than $8.5 million in annual savings expected from the elimination of tBTC staking rewards, this sets the stage for significant profitability moving forward.
Cost efficiency also allows the DAO to eliminate treasury sales of T tokens, enabling it to strategically reinvest in T token. The DAO treasury will continue to accrue tBTC via bridge fees and T tokens via buybacks as per TIP-54.
Threshold has already completed its first purchase of ~30M T tokens for 5.8 tBTC here.
Given the tight economic linkage between T and tBTC, this shift is expected to create a virtuous cycle of growth, where increased Total Value Locked (TVL) and bridge velocity drive T’s value, attracting further participation and reinforcing the ecosystem’s expansion.
There are already ~420 million T tokens available in governance and multisigs, worth around $7 million in today’s market value. There is also $8-9 million in reserve assets (tBTC, ETH, and stablecoins) securing a 2-3 year operational runway.
With these, the project is well-positioned to support tLabs’ development efforts without requiring additional token issuance.
About Threshold Network
Threshold Network powers tBTC, the Bitcoin standard for DeFi—a trust-minimized way to bring BTC liquidity into the crypto ecosystem while always maintaining a direct settlement path back to native Bitcoin. Since its launch, Threshold tBTC has processed 32000 BTC ($2.7B at current prices), cementing its position as a flagship platform driving innovation and growth.
Unlike other BTC derivatives or wrapped tokens, tBTC is designed to be as close to Bitcoin as possible while enabling seamless participation in DeFi. No complex staking mechanics, no dependency on a single entity—just pure BTC liquidity that always settles back to Bitcoin.
Threshold Network’s T token powers tBTC and is the value accrual asset used to distribute profits from bridge fee via token buybacks.
More information about Threshold Network can be found on its website, X, Telegram, Discord, and GitHub.