TIP 27: tBTC v1 to v2 migration
AI summary
This proposal, TIP 27, asks Threshold Network DAO members to decide the future of tBTC v1, the first version of their Bitcoin-backed token. It offers three choices: 'The Sunsettening,' which gradually phases out v1 while keeping it operational; 'Custodial Wind Down,' which involves a third party to manage the transition; or 'Do Nothing.' The core issue is how to encourage users to migrate their tBTC from v1 to the newer, improved v2 version.
If 'The Sunsettening' passes, tBTC v1 will remain decentralized, but the network might experience a temporary halt in growth for 2-3 months, and the DAO will incur costs for relayers and other operational expenses. If 'Custodial Wind Down' passes, tBTC v1 could temporarily become unbacked and require a third-party custodian, incurring new costs. 'Do Nothing' would leave the current situation unchanged, potentially hindering the adoption of tBTC v2. The specific financial impact on the treasury for each option is not detailed in dollar amounts, making it difficult to quantify who benefits or loses financially beyond general operational costs.
Voting results
Votes over time
x-axis = % of voting window elapsed · y-axis = cumulative VP per choice
🐳 Whale votes
6 votes > 5% VPFull proposal
Option 1 - The sunsettening
For the full proposal please see the forum post
Advantages
- Preserves decentralization of tBTC
- Simplifies the sunsetting process
- Continuity, both tBTC v1 and tBTC v2 remains operational indefinitely
- No loss for last standing node operators
- No loss for tBTC holders and tBTC v1 holders can hold forever if they wish to
Disadvantages
- 2-3 months of no growth (capped at ~670 tBTC)
- Relay has to be paid during this period
- Costs of redeemer, incentives, cover of losses