TIP-109: Reintroduce a tBTC Mint Fee
AI summary
This proposal, TIP-109, seeks to reintroduce a 0.20% fee for minting tBTC, a tokenized version of Bitcoin on the Threshold Network. Currently, minting tBTC is free. The redemption fee, which is also 0.20%, will remain unchanged. The proposal also aims to remove a mandatory 30-day waiting period for future tBTC fee changes, streamlining the governance process for fee adjustments.
If passed, users minting tBTC will incur a 0.20% fee, which will generate revenue for the Threshold Network. This change primarily benefits the DAO by creating a sustainable revenue stream and potentially impacts users who frequently mint tBTC by increasing their costs. The removal of the 30-day delay will allow for quicker adjustments to tBTC fees in the future.
Voting results
Votes over time
x-axis = % of voting window elapsed · y-axis = cumulative VP per choice
🐳 Whale votes
2 votes > 5% VPFull proposal
Vote type: Token holder DAO on-chain 7-day vote period
DAO-elected Sponsors: Threshold Committee
tl;dr
This proposal reintroduces a 20 basis point (0.20%) mint fee for tBTC. The redemption fee will remain unchanged, as defined under TIP-075.
The proposal restores a sustainable fee structure now that the mint fee holiday has served its purpose, while maintaining clarity and predictability for users and integrators.
Background Threshold DAO has adjusted tBTC bridge fees through multiple governance decisions in response to the protocol’s stage of development:
- tBTC v2 initially launched wi…