TIP-106: Experimenting with a tBTC fee rebate for locking T tokens
AI summary
This proposal, TIP-106, suggests an experiment to introduce a fee rebate system for users who lock their T tokens, the native token of the Threshold Network. By locking T tokens for 30 days, users can receive a rebate on the fees incurred when bridging tBTC (Threshold Bitcoin) to Bitcoin. The goal is to incentivize long-term holding of T tokens and improve the price stability of tBTC relative to Bitcoin by making arbitrage more attractive.
If passed, this proposal could increase demand for T tokens as market makers and arbitrageurs lock them to reduce their bridging costs. It aims to reduce the persistent discount of tBTC to BTC, benefiting tBTC holders and potentially increasing the utility of the Threshold Network. Users who do not lock T tokens will continue to pay standard bridge fees.
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 snapshot, single-choice voting (yes/no/abstain)
DAO-elected sponsor: John Packel
Timeline: 7-day discussion period followed by 7-day Snapshot vote
Purpose
Threshold Labs proposes to test the market appetite for an automated, instant bridge-fee rebate based on locking T tokens. We expect that DAO discussion and tLabs delivery of an initial feature will provide valuable learnings for development of mechanisms and tokenomics that more closely tie T value to tBTC success, encourage long-term staking and alignment with tBTC strategy, and improve the tBTC / BTC price …