Osmosis DAO has unanimously supported a revenue sharing proposal that would allow a free connection of Bitcoin to the ecosystem Cosmos via Nomic.
This proposal has been through with overwhelming community support, with 93% of DAO members supporting the free upgrade. Meanwhile, about 6% of DAO members abstained, while less than 1% opposed the move.
Source: Mintscan
“Osmosis users will no longer be charged bridging or transfer fees for nBTC transactions between Nomic and Osmosis. This mechanism will be implemented via a future software upgrade upon approval by both Nomic and Osmosis administration.”
This initiative sets a new precedent in bridge business models – which have struggled to capture value directly from deposits and withdrawals. The Osmosis upgrade solves this problem by aligning Nomic’s protocol revenue with the actual usage of the Bitcoin bridge.
“This proposal heralds the addition of a protocol revenue sharing system that would replace bridging costs with a portion of performance fees collected from trading activity on Osmosis, thus Nomic benefits from increasing adoption of nBTC across applications on Osmosis instead of just arbitrage to the value of the original Bitcoin.”
The user-centric upgrade is expected to allow users to leverage their Bitcoin holdings for DeFi activities on Osmosis, such as lending, borrowing, and staking. It also integrates Bitcoin into the broader DeFi ecosystem, attracting new and existing users.
Osmosis co-founder Sunny Agarwal praise This proposal is an important milestone in DAO-to-DAO transactions.
“The proposal provides a new ‘revenue sharing’ business model for bridges, one that is only possible with appchains (which are difficult to implement in generalized blockchains).”
This development follows significant growth in trading volume on Osmosis in the fourth quarter of 2023, increasing sixfold compared to the previous quarter, exceeding USD 5.3 billion.
This increase was driven by the introduction of new features such as volume split incentives, recalibrating incentives by epoch, targeting liquidity to high traffic areas, and introducing Lower pool fees.
Itadori
According to Cryptoslate
