Threshold Overhauls DAO Structure, Initiates Token Buyback

Threshold Network (T) announced on the 21st that it will extensively overhaul its Decentralized Autonomous Organization (DAO) structure and undertake strategic reinvestment centered on T token buyback.

This overhaul redefined the functions and roles of the DAO, focusing on tLabs, a new organization dedicated to the development and operation of Threshold Wrapped Bitcoin (tBTC).

Through the overhaul according to TIP-98, TIP-100, and TIP-103, Threshold aimed to enhance governance efficiency and transition to a structure that strengthens execution. Core tasks such as development, marketing, and DeFi integration will be transferred to tLabs, while the DAO will maintain only essential functions like finance, technology, communication, project management, and incentives with minimal personnel. The newly formed Threshold Committee will manage DAO governance, adopting a 5-of-9 multi-sig structure composed of 6 paid part-timers and 3 volunteers.

The overhaul is expected to save approximately $1.1 million in annual operating costs, with governance and contributor reward costs reduced to around $602,000. Additional savings from the termination of tBTC staking rewards are projected to reach $8.5 million annually.

Threshold plans to end its existing token sale strategy and pursue a capital allocation strategy centered on T token buyback using its assets. Following the recent TIP-54 proposal, the first transaction was completed, purchasing approximately 30 million T for 5.8 tBTC. Through the buyback strategy, Threshold aims to establish a virtuous cycle leading from tBTC bridge fees → DAO revenue → T token buyback → increased T demand, thereby promoting user participation in the ecosystem.

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