Osmosis DAO Unanimously Supports Proposal for Zero-Fee Bitcoin Bridge to Cosmos Ecosystem
The Osmosis Decentralized Autonomous Organization (DAO) has unanimously backed a proposal to implement a zero-fee Bitcoin bridge to the Cosmos ecosystem via Nomic. The proposal has garnered strong community support, with 92% of DAO members in favor of the upgrade.
The voting for the proposal will conclude by 23:58 UTC on June 21. If approved, users of Osmosis will no longer incur bridging fees or transfer fees for nBTC transactions between Nomic and Osmosis. This change will be implemented through a future software upgrade, pending approval from both Nomic and Osmosis governance.
This move sets a new standard in bridge business models, as it addresses the challenge of generating value directly from deposits and withdrawals. The initiative aligns Nomic’s protocol revenue with the actual usage of its Bitcoin bridge.
The user-centric upgrade is expected to empower users to utilize their Bitcoin holdings for various DeFi activities on Osmosis, including lending, borrowing, and staking. It also aims to integrate Bitcoin into the broader DeFi ecosystem, attracting both new and existing users.
Sunny Agarwal, co-founder of Osmosis, lauded the proposal as a significant milestone in DAO-to-DAO agreements, noting its unique ‘rev share’ business model for bridges.
The development comes on the heels of substantial growth in trading volume on Osmosis in the fourth quarter of 2023. The DEX witnessed a 6x increase in trading volume on a quarterly basis, exceeding $5.3 billion, driven by the introduction of new features and incentives.
This article mentions developments in Bitcoin and the broader crypto market.
