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Cosmos DAO Osmosis to Adopt Fee-Free Bitcoin Bridge

Jun 20, 2024
  • The revenue-sharing agreement may address the shortcomings of blockchain bridges, in which the parties need to earn revenue directly from deposits and withdrawals.
  • The goal is to remove some of the friction users may previously have experienced when bridging their bitcoin holdings to other ecosystems for decentralized finance-related activities.
As a seasoned crypto investor with a deep understanding of the blockchain landscape, I’m excited about the recent development between Osmosis and Nomic’s Bitcoin bridge. The revenue-sharing agreement they’ve reached addresses a significant pain point in interoperability – how different parties earn revenue from deposits and withdrawals when bridging assets between ecosystems.In simple terms, the decentralized autonomous organization (DAO) called Osmosis made a decision to incorporate a fee-waiving connection for transferring Bitcoin (BTC) into the Cosmos network.

According to an email announcement received by CoinDesk on Friday, a crucial aspect of the process involves a revenue-sharing contract with Bitcoin bridge Nomic. Essentially, Nomic acts as a connection between different blockchains, enabling users to transfer cryptocurrency assets seamlessly from one platform to another.

“The revenue-sharing arrangement could help tackle one of the challenges with bridges – specifically, how various parties generate income from deposits and withdrawals. According to the statement, Nomic’s protocol earnings will be linked to the usage of its Bitcoin bridge for BTC transfers.”

As a crypto investor, I understand the frustration of having to jump through hoops to move my Bitcoin between different platforms for DeFi activities. To make this process smoother, one solution could be the implementation of more user-friendly and seamless bridging mechanisms. By doing so, we can reduce the friction and complexities often associated with transferring assets across various ecosystems. This way, investors like myself can easily participate in DeFi opportunities without being hindered by technical complications.

As I analyze the data with only hours left before the Osmosis DAO voting deadline, an overwhelming 95% of the community’s expressed preferences lean toward approving the deal.
Nomic’s bridge is part of a growing movement among developers aiming to unlock the value of Bitcoin, the leading cryptocurrency in terms of market capitalization, to invigorate the wider digital asset sector. In April, Nomic unveiled its intention to incorporate Babylon’s Bitcoin staking mechanism and launch stBTC – a token representing liquid-staked Bitcoin.

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2024-06-21 16:14