Threshold Network announced the introduction of stake-based fee waivers for $T holders to enhance token utility and improve capital efficiency across the tBTC decentralised Bitcoin bridge.
By staking $T tokens, users can qualify for reduced or fully waived tBTC bridge fees on eligible mint and redeem transactions, strengthening the link between governance participation and protocol usage.
Minting Bitcoin into tBTC will remain free, while redemption fees of up to 20 basis points can now be partially or fully offset depending on the amount of $T staked.
The mechanism is designed to lower execution costs for frequent Bitcoin bridgers and improve arbitrage efficiency between BTC and tBTC markets.
Larger $T stakes unlock greater fee waiver capacity, allowing long-term holders to reduce transaction costs while supporting network infrastructure.
The update aims to support tighter BTC–tBTC price parity by reducing redemption friction that previously contributed to minor secondary market discounts.
“tBTC is now perfectly pegged. No more 20bps discount attributable to redemption fees,”
MacLane Wilkison said.
Fee waiver capacity applies over a rolling 30-day period, with every 100,000 $T staked offsetting up to 0.001 tBTC in eligible fees.
Unstaking $T requires a 30-day waiting period, while governance participation rules remain unchanged.
Threshold Network said early data shows the system is improving pricing reliability while maintaining conservative security assumptions.
The update is expected to benefit frequent bridgers, market makers, arbitrageurs, institutions, and long-term $T holders, with indirect liquidity benefits for non-stakers as well.
At the time of reporting, Bitcoin price was $89,788.44.