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

Option 2 - Custodial wind down

For the full proposal please see the forum post

Advantages

• Fixed amount of relayer expenses
• Maintains a higher amount of TBTC in circulation before the v2 bridge is live.

Disadvantages

• TBTC goes through a period of being unbacked where TBTC cant directly be redeemed to BTC
• Requires a 3rd party to store the BTC once it has been unminted
• Cost of the 3rd party
• Requires incentives to get TBTC v1 to be upgraded through the vending machine.

Option 3 - do nothing