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Over the past few months, you may have noticed a shift in how we show up, not just in what we build, but how we talk about it.
This didn’t happen overnight. It was the result of months of conversation, debate, and alignment within the DAO — all grounded in one question: how do we stay true to Bitcoin while helping it move forward?
As we enter what many call the “Bitcoin Hypercycle,” countless new projects are emerging, each vying for a piece of the momentum. But Threshold isn’t new to this. We’ve been here since the beginning, and we have beaten all the odds, as we have consistently stayed true to our core belief that Bitcoin deserves more than storage and speculation.
Since 2019, we’ve worked to unlock its potential while fiercely protecting the values that make it what it is: trust-minimized, secure, and sovereign. No added gimmicks, just real liquid Bitcoin Onchain.
That belief hasn’t changed, and we have restructured to build on that belief even further. Threshold Network is no longer spread across many fronts. We’ve sharpened our focus into a singular mission: to make tBTC the dominant, decentralized, cross-chain liquidity rail for Bitcoin in DeFi. This isn’t just a pivot — it’s a commitment to go all in on what we believe matters most.
This article is a reflection of that shift. It explains where we’re going, why it matters, and how we’ll get there. No corporate buzzwords. No fluff. Just the honest story of how Threshold found its edge — and how we’re using it to build something Bitcoin can finally move through.
Threshold was born from a vision of integration and synergy. Created through the groundbreaking merger of Keep and NuCypher in 2021, Threshold pioneered a bold approach: building multiple threshold cryptography applications under unified governance:
This diversified strategy aligned with bull market expansion thinking but created three key challenges as the market matured:
1. Resource Allocation Efficiency: By 2024, Threshold was allocating $1.5 million annually to operational overhead across multiple product lines, a common challenge for expanding DAOs. What works during growth phases often becomes suboptimal during periods of market consolidation.
2. Market Positioning Clarity: As tBTC demonstrated increasing product-market fit, our multi-product communication strategy created natural positioning challenges. Clear, focused messaging is increasingly becoming crucial in the current market.
3. Tokenomic Sustainability: T token staking emissions effectively bootstrapped network security, but like many maturing protocols, Threshold needed to evolve toward an economics model aligned with sustainable growth rather than initial network bootstrapping.
Threshold's transformation isn't happening in isolation. Across the crypto landscape, DAOs are abandoning the free-spending, multi-project frameworks to align incentives with revenue mechanisms, as shown in the illustration below:
Evolution of DAOs (illustration)The bear market imposed a discipline that bull markets never require. It's not just a trend; it's natural selection in the protocol ecosystem. Projects that emerge from this evolution are leaner but stronger, with clarity of purpose and sustainable operations.
In early 2025, the community implemented the Threshold Improvement Proposal (TIP-100 and TIP-103). Creating a strategic framework for accelerated growth:
TIP-100 established a strategic division of responsibilities: T Network Labs operates as a lean startup focused exclusively on tBTC development and growth, while the DAO maintains critical governance functions.
Rather than simply delegating execution, this created two complementary entities with aligned missions but different operational models: bringing startup agility to product development while ensuring robust grassroots community governance.
The external opportunity for Threshold is expanding dramatically, yet most of this activity happens through centralized or semi-centralized bridges: exactly what tBTC is designed to replace.
With strategic clarity established, Threshold's new roadmap can be read in the following proposals:
The DAO's restructured finances project a ~23-month runway for stablecoin obligations, with $10.6M in T tokens held against annual protocol and incentives costs of $1.58M. This conservative financial planning ensures long-term sustainability while enabling strategic resource allocation to tBTC development.
This evolution delivers four key advantages:
Complementary Organizational Models: The restructuring creates specialized entities for different functions: T Network Labs brings a startup-style focus and agility to product development and growth, while the streamlined DAO governance (through the Threshold Committee) maintains robust community oversight, treasury management, and security functions.
Threshold DAO has embraced the natural evolution that successful protocols must undergo. By choosing strategic focus over diversification, sustainable economics over bootstrapping incentives, and execution excellence over exploration, we've positioned ourselves to lead in the rapidly expanding Bitcoin DeFi landscape.
This transformation represents the maturation of Threshold, a transition from the experimentation phase to targeted execution. It meant making tough choices about promising projects, refining our operational structure and aligning around our demonstrated strengths.
The result is an organization precision-tuned to achieve what matters most: bringing Bitcoin's massive liquidity into DeFi without compromising on decentralization or security.
The strategically focused Threshold DAO is now positioned to deliver on its core promise. No unnecessary complexity, no diluted efforts, just a clear mission and the optimized structure to achieve it.
By focusing our resources on tBTC, we've created the organizational clarity and execution velocity needed to compete in the current market demand. The leaner, focused Threshold is now optimized to deliver on its original promise.
For five years, Threshold Network has stood for what Bitcoin truly represents: trust-minimized, permissionless, and resilient. We’re not chasing trends — we’re building the future. T Network Labs is here to carry that momentum forward, stronger than ever.
No shortcuts. No noise. No gimmicks.
Just setting the right Bitcoin standard onchain....
And we’re only getting started.
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