Cosmos DAO Osmosis to Adopt Fee-Free Bitcoin Bridge
Osmosis, a decentralized autonomous organization (DAO), has voted to adopt a fee-free Bitcoin bridge. This will allow Bitcoin (BTC) to move into the Cosmos ecosystem with ease. A revenue-sharing agreement with Bitcoin bridge Nomic is crucial for this process.
What is a Blockchain Bridge?
A bridge in blockchain technology allows users to move crypto assets from one system to another. It's like moving money from one bank to another in the traditional financial system. However, with current blockchain bridges, the parties involved need to make money directly from deposits and withdrawals.
The New Agreement
The new agreement between Osmosis and Nomic aims to address this issue. Instead of earning directly from users' transactions, the revenue will be aligned with the usage of Nomic's protocol. This setup might reduce some of the problems users faced when they moved their Bitcoin to other ecosystems for decentralized finance (DeFi) activities.
Voting Results
The voting for this proposal is overwhelmingly positive. With less than 24 hours left for the voting to end, 95% of votes from the Osmosis DAO community support the deal.
Why It Matters
This fee-free bridge is part of a larger trend. Developers are looking to leverage the value in BTC—the largest cryptocurrency by market cap—to provide liquidity to the broader digital asset industry. For instance, in April, Nomic announced plans to integrate Babylon's Bitcoin staking protocol and introduce stBTC, a bitcoin liquid staking token.
Conclusion
By adopting a fee-free Bitcoin bridge, Osmosis DAO aims to make it easier for users to move their Bitcoin into the Cosmos ecosystem for various financial activities. This collaboration with Nomic could set a new standard for blockchain bridges, reducing friction and enhancing the overall user experience.
