$T
Threshold Network recently announced a comprehensive network restructuring plan and will strategically reinvest through a T token buyback. This restructuring focuses on enhancing cost-effectiveness, with specific measures including cutting annual operating expenses, halting the sale of T tokens from the treasury, and accumulating T tokens through precise buyback strategies. Additionally, the Threshold DAO's treasury will continue to accumulate tBTC through bridging fees while simultaneously advancing the buyback of T tokens.
This restructuring significantly improves the financial health of the protocol. Annual operating costs have been reduced by approximately $1.1 million, bringing the total costs of governance and contributor roles down to $602,000 per year. Meanwhile, the cancellation of tBTC staking rewards is expected to save over $8.5 million annually. Notably, Threshold has completed its first buyback, acquiring approximately 30 million T tokens at a cost of 5.8 tBTC. Currently, around 420 million T tokens are used for governance and multi-signature, valued at approximately $7 million based on current market value. Furthermore, Threshold holds around $8-9 million in reserve assets (including tBTC, ETH, and stablecoins), sufficient to support network operations for the next 2-3 years.
This series of measures not only enhances the financial sustainability of the protocol but also lays a solid foundation for the long-term development of Threshold Network, further highlighting its competitiveness and adaptability in the network ecosystem.