Osmosis DAO Adopts Fee-Free Bitcoin Bridge

The Decentralized Autonomous Organization (DAO) Osmosis has voted in favor of implementing a fee-free Bitcoin bridge to facilitate the movement of bitcoin (BTC) into the Cosmos ecosystem.

A significant aspect of this decision involves establishing a revenue-sharing agreement with the Bitcoin bridge provider, Nomic. This collaboration aims to enhance interoperability between blockchains and enable users to transfer crypto assets seamlessly between different systems.

The revenue-sharing arrangement is designed to address a common challenge associated with bridges, which is ensuring all involved parties receive fair compensation for facilitating deposits and withdrawals. By aligning Nomic’s protocol revenue with the usage of bridged BTC, the agreement seeks to streamline the process of bridging bitcoin for decentralized finance (DeFi) activities.

The ultimate goal is to reduce the barriers that users previously faced when bridging their bitcoin holdings to other ecosystems for DeFi purposes. With an overwhelming 95% approval rate from the Osmosis DAO community, the vote to proceed with the agreement is nearing completion.

Nomic’s Bitcoin bridge initiative reflects a broader trend among developers looking to unlock the value of BTC, the leading cryptocurrency by market capitalization, to bring liquidity to the wider digital asset industry. In addition to the bridge project, Nomic has also announced plans to integrate Babylon’s Bitcoin staking protocol and introduce stBTC, a liquid staking token pegged to bitcoin.