TIP-96: Mint 5% of T supply for TVL growth milestones

Vote Type

Token Holder DAO Snapshot

DAO-elected Sponsors

@JohnPackel , @Eastban

Timeline

• 7 days for comment / discussion on this proposal
• Token holder DAO Snapshot with a 7-day vote period
• If approved, 9 days for Governor Bravo vote (+ 4 days queue & timelock)

Who is Involved?

Threshold DAO, Threshold Treasury Committee, aligned liquidity provider(s)

Highlights

Accelerate tBTC usage and TVL by engaging active trading firms
Performance-based T token grants totaling up to 5% of current supply
Delegation to Treasury Committee the agreement on and monitoring of performance milestones

Details

While centralized wrapped Bitcoin products continue to be released and some decentralized versions struggle or face delayed launches, tBTC is the oldest decentralized Bitcoin to DeFi bridge, approaching the 5-year mark of secure, trust-minimized activity – and increased utility to the community through adoption on major lending protocols like Aave, direct minting on Arbitrum (with Base and other L2s in development), stablecoin borrowing via ThresholdUSD and more.

tBTC has seen significant growth the last six months, particularly since August when many holders of WBTC expressed concern over its custody changes by dramatically increasing unmints. We are approaching 16,000 tBTC minted since January 2023, and more than 11,000 has been unminted.

The goal of this proposal is to accelerate that growth substantially by engaging one or more experienced trading firms and providing an incentive to mint large volumes of tBTC in exchange for T token grants. Additional anticipated benefits include enhanced trading activities on several centralized exchanges.

If a trading firm meets specified milestones, it will earn grants. In order to secure the best terms from potential trading firms, explicit milestones are not articulated here, but token holders delegate agreement on and monitoring of performance-based milestones to the Threshold Treasury Committee.

The minting of tBTC and the token grants to a trading firm will be publicly displayed and monitored.

Transaction details

After the Forum comment period, if TIP is approved by Snapshot, the mint via Governor Bravo will commence. 551,750,000 T tokens will be deposited to Threshold Foundation multisig for distribution as the Treasury Committee confirms milestones are achieved.