Threshold Network Unveils Fee Waiver Program for tBTC Stakers
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Threshold Network Unveils Fee Waiver Program for tBTC Stakers

Threshold Network launches fee waivers for $T stakers to enhance tBTC functionality and economic efficiency.

[PRESS RELEASE – New York, United States, January 22nd, 2026]

Threshold Network today announced the launch of fee waivers for $T stakers, a mechanism intended to enhance the Threshold token’s utility and improve on-chain performance and capital efficiency for tBTC, its decentralized Bitcoin bridge.

By staking (locking) $T tokens, participants become eligible for reduced or fully waived tBTC bridge fees on eligible mint and redeem activities. This update lowers execution costs for active users, enhances arbitrage efficiency between tBTC and BTC, and establishes a clearer connection between governance participation and actual protocol usage.

Lower Costs, Better Outcomes for Active BTC Users

For participants who frequently bridge Bitcoin, execution costs can accumulate over time. Minting BTC into tBTC remains free, consistent with previous governance decisions. However, redemption comes with a fee of up to 20 basis points, reflecting the cost of maintaining secure, decentralized bridge infrastructure. The newly introduced fee waivers for $T stakers aim to alleviate this friction by minimizing or completely offsetting redemption costs based on the amount of $T staked.

Staking larger amounts of $T increases waiver capacity, benefiting users with significant reductions in redemption and other eligible protocol fees.

For participants, this means:

  • Lower effective execution costs over time
  • Enhanced arbitrage efficiency between BTC and tBTC
  • Tighter pricing and more dependable liquidity
  • No alterations to custody, settlement, or operational workflows

For long-term $T holders, staking now extends beyond governance participation or security contribution, becoming a practical tool to enhance execution outcomes while strengthening the infrastructure they depend on.

Supporting Tighter BTC–tBTC Pricing

The design of tBTC aims to track Bitcoin as closely as possible. Even minor sources of friction can be significant at scale. The 20-basis-point BTC redemption fee, implemented to sustain protocol viability, introduced a subtle drag that could manifest as a proportional discount to BTC in secondary markets.

Fee waivers alter the economics of that interaction. By lowering redemption costs for active participants, $T staking boosts arbitrage efficiency between tBTC and BTC, facilitating tighter pricing, improved liquidity, and smoother BTC flows across DeFi, which benefits both users and the protocol.

Early data suggest that this mechanism is performing as intended, reinforcing pricing reliability while upholding the protocol’s cautious security assumptions.

’tBTC is now perfectly pegged. No more 20bps discount attributable to redemption fees’ – MacLane Wilkison, Co-Founder of Threshold Network on X

Understanding Key Benefits and Limitations

When T is staked, it unlocks waiver capacity for tBTC minting and redemption over a rolling 30-day window. For every 100,000 T staked, users can offset 0.001 tBTC in bridge fees. tBTC fees can be entirely waived if a user stakes a proportional amount of T.

Key parameters include:

  • Waiver capacity applies over a rolling 30-day window
  • Every 100,000 $T staked offsets up to 0.001 tBTC in eligible fees
  • Minting remains free; redemption fees are offset via waivers
  • Unstaking necessitates a 30-day period
  • Governance participation is unaffected

In recent times, tBTC has shown consistent, steady growth and robust on-chain performance compared to other Bitcoin wrappers, supported by transparent design and sustained market usage. The introduction of fee waivers for $T stakers reflects Threshold Network’s ongoing dedication to refining the economic and operational framework for integrating Bitcoin on-chain in a manner that promotes efficiency, dependability, and market integrity.

This update is pertinent for participants who frequently engage with Bitcoin infrastructure, including busy bridgers, market makers, arbitrageurs, long-term $T holders, and institutions seeking transparent, capital-efficient access to Bitcoin. Even users who do not stake may indirectly benefit from improved liquidity, tighter pricing, and enhanced reliability across tBTC markets.

Staking $T is optional. Eligible participants may access available fee waivers according to the applicable protocol parameters. The $T token is available on most decentralized exchanges and major centralized exchanges.

Where users can find $T: CoinGecko To start acquiring $T tokens, users can visit Threshold Network Stake

About Threshold Network

Threshold Network powers tBTC, the Bitcoin standard in finance, enabling Bitcoin liquidity to transition across chains without compromising settlement finality. Secured by threshold cryptography, tBTC is trust-minimized and censorship-resistant, while maintaining a direct settlement path back to native Bitcoin.

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