Osmosis DAO votes for a feeless Bitcoin bridge agreement, allowing for BTC transfers within the Cosmos ecosystem.
Fee Sharing Agreement with Nomic
The key element of this initiative is a fee sharing agreement with the Nomic Bitcoin bridge. According to an announcement, this agreement aims to address one of the main flaws of blockchain bridges: how different parties generate revenue from deposits and withdrawals.
The proposed agreement will align Nomic’s protocol revenue with the use of its bridged BTC, thus facilitating a more sustainable economic model.
Reducing Friction for Users and Community Support
The goal of this initiative is to eliminate some of the frictions users may encounter when transferring their Bitcoin assets to other ecosystems for DeFi-related activities.
By removing transfer fees, Osmosis hopes to encourage broader adoption and increased usage of bridged Bitcoins within the Cosmos ecosystem.
With only a few hours left before the vote closes, 92% of Osmosis DAO community votes were in favor of the agreement.
Nomic’s bridge is part of a larger trend where developers seek to tap into the value of Bitcoin to bring liquidity to DeFi. In April, Nomic announced its intention to integrate the Babylon Bitcoin staking protocol and introduce stBTC, a liquid staking token in Bitcoin.
