The native token of the Bitcoin-focused decentralized finance (DeFi) project, Threshold Network, has defied the broader crypto market downturn, surging by more than 55% this week. The project powers tBTC, a decentralized wrapped Bitcoin that integrates seamlessly across DeFi ecosystems.
At the time of writing, the project’s native token, T, is trading at $0.0223, up from $0.0143 just one week ago. The 236th-ranked crypto asset by market capitalization has also seen a remarkable 48% increase in the past 24 hours alone.
The price surge follows Threshold Network’s announcement on Thursday of a strategic restructuring of its decentralized autonomous organization (DAO). The move is expected to reduce annual operational costs by approximately $1.1 million. According to the project, this restructuring, combined with the elimination of tBTC staking rewards, is projected to save over $8.5 million annually, paving the way for significant profitability.
The cost efficiency achieved through these measures will allow the DAO to halt treasury sales of T tokens and instead focus on strategic reinvestment. The DAO treasury will continue to accrue tBTC through bridge fees and T tokens via buybacks, as outlined in TIP-54. Threshold Network has already completed its first purchase of approximately 30 million T tokens for 5.8 tBTC.
The project emphasized, “Given the tight economic linkage between T and tBTC, this shift is expected to create a virtuous cycle of growth, where increased Total Value Locked (TVL) and bridge velocity drive T’s value, attracting further participation and reinforcing the ecosystem’s expansion.”
This development marks a significant milestone for Threshold Network as it positions itself for sustainable growth and increased adoption within the DeFi space.
Source: Chainwire