Threshold
Layer 1 Protocol, Threshold Ecosystem
Threshold will continue to provide privacy services to the Web 3 ecosystem. Specifically, the network will maintain threshold crypto primitives, such as proxy re-encryption, threshold signatures, and distributed key generation.
APY | 10% |
Compounding | Automatic or Manual |
Reward Distribution Period | Every epoch (24 hours) |
Unbonding Period | End of selected lockup period |
Delegation Requirements (Min-Max) | min 40.000 T |
Inflation | Varies |
Figment Validator Address | N/A |
Recommended Wallet |
Double Signing | N/A |
Downtime | N/A |
Threshold detects instances where nodes return incorrect re-encryptions. The staker that controls the node will be slashed an amount of tokens.
The Threshold Network is a means to keep your information and digital assets private even when using a public blockchain. Threshold is made up of two networks (NuCypher and Keep) in a similar space that have decided to launch the first ever on-chain merger of two decentralized networks that share a common goal. That goal is to safeguard the users sovereignty on public blockchain networks through the use of Threshold cryptography. Keep networks infrastructure and NuCypher’s privacy capabilities will allow users to keep their digital assets private and secure.
As of January 1st, 2022 the new token contract has been deployed and the new Threshold (T) tokens have minted. NU and KEEP token holders can transfer their liquid tokens over to T tokens. See our guide for this process.
- APY is targeting 15%
- Rewards are distributed every 24 hours, and you can withdraw them every two months
- Slashing risk: Threshold detects cases when nodes return incorrect re-encryptions. The staker controlling the node will be slashed.
Threshold tokens can currently be staked via Metamask, Ledger or WalletConnect at this time. We will be using Metamask in conjunction with Threshold staking for this guide. Metamask is a non-custodial wallet that requires the user to keep their mnemonic phrase and password secure.
If you do not already hold your T tokens in your Metamask wallet you will need to send your T tokens to your Metamask wallet. Metamask has great support information here. Once that is done you can go to threshold.network and click “Start Staking”.
This will take you to this page where you need to click “Go to Staking”.
The next site asks you to connect to your wallet. You can click “Connect Wallet” in the top right corner of the page or at the center left of the page. Both buttons are the same.
You will see a “Connect a Wallet” field that offers either Metamask or WalletConnect. Please select Metamask to go ahead.
Metamask will now ask you to confirm the connection. You do so by clicking accept.
Once the connection to your Metamask wallet is complete you will see the following screen. At this screen please select “View Dashboard”.
Now at your Dashboard you will see the amount of T tokens that are available via your Metamask wallet above to the right of the “Stake” button. The next step is to click “Stake”.
After selecting that you will see a field with some extra information about the early stage of Threshold staking. Read the information carefully and then select the check box at the bottom acknowledging the information and then click “Stake”.
The following view asks you to enter the amount of T tokens you wish to stake and shows your Metamask address as the “Provider, Beneficiary and Authorizer”. Please enter the amount of T tokens you wish to stake and select “Stake”.
Metamask will now ask you to give permission to Threshold Staking to access your T tokens. Review the transaction on the right and select “Confirm”.
Once you have clicked “confirm” it will load a moment and you will be asked to confirm the staking/delegating of your T tokens. This is the final step. You can now return to your dashboard and you will see your “Staked Balance” on the right side.
Congratulations, you are now staking on Threshold!
To earn rewards, stakers must also run a PRE node. If you would like to earn rewards and are planning on staking more than 40,000 T, each out to us at [email protected]
Currently, the Threshold DAO consists of three bodies – Token Holder DAO, Staker DAO and the Multisig Council. They are basing their DAO on Compound's GovernorBravo.
The Token Holder DAO is made up of T holders and those who deposit into coverage pools.
The Staker DAO are the stakers. The Staker DAO voting power will be proportional to stake weight on the network.
The Multisig Council has nine seats that have one-year terms. Members can be voted out if they fail to fulfill their duties, act in a way that harms the network, or is inconsistent with the wishes of the community.
How voting happens on the network:
- 1.People will need to select a delegate, This requires an on-chain tx.
- 2.
The goal of tBTC v1 was to allow Bitcoin holders to participate on the Ethereum network by providing Bitcoin holders a way to earn a yield on DeFi dapps built on Ethereum. tBTC converts Bitcoin to an ERC-20 token pegged to the price of Bitcoin. tBTC, unlike wBTC, is permissionless and decentralized.
Threshold is launching v2 to improve the scaling issues of v1. Threshold will increase the signer set for v2, remove the requirement to collateralize with ETH and reduce mining costs. The increased pool of stakers from the merge assists with the former.
Currently, Bitcoin has the largest market cap of any cryptocurrency, currently valued at 1.2T USD. But because there are not smart contracts on the network, Bitcoin serves more as a store of value than a medium of exchange. Meaning that any on-ramp to bring Bitcoin to any ecosystem will be immensely valuable. v2 provides that on-ramp into Ethereum and opens all kinds of new investment/participation opportunities to Bitcoin holders. At the same time, the Ethereum ecosystem receives a large influx of capital that can be used for work, liquidity provision, or loans to accelerate value-added to the space.
What is Threshold?
The Threshold Network is a cryptographic network that will run threshold cryptography and host tBTC v2. The network comes from NuCypher and Keep joining forces in order to eliminate competition and have a larger market share. Threshold will continue to provide privacy services to the Web 3 ecosystem. Specifically, the network will maintain threshold crypto primitives, such as proxy re-encryption (PRE), threshold signatures, and distributed key generation.
What is protocol staking?
On a Proof of Stake blockchain, protocol staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
Staking on Threshold is enabled since February 4th, 2022, it can be performed and managed via the Threshold Dashboard.
What is the name of the asset being staked?
The native token on Threshold is called T.
What is the T token used for?
The T token is used for staking purposes to secure the network and receive rewards as well as participating in governance and cover work on the network.
What is tBTC?
tBTC enables Bitcoin token holders to access the Web3 ecosystem and earn yields on DeFi dapps built on Ethereum while keeping sovereignty and control over their BTC. Unlike wBTC, is permissionless and decentralized, tBTC converts Bitcoin to an ERC-20 token pegged to the price of Bitcoin; it does so by bridging BTC to Ethereum in a trustless, decentralized manner through threshold cryptography.
The tBTC v1 was firstly enabled on the Keep Network proving high demand for such a solution but still limited in its scalability. The tBTC v2 on Threshold improves the scaling issue of v1 providing greater scalability on Ethereum and other chains.
The tBTC v2 is slated for launch on Mainnet in August 2022.
How can I trade my NU and KEEP tokens into T ones?
Yes, and there is no deadline to upgrade to the T token. NU and KEEP token holders can trade them into the T tokens in two ways: by interacting directly with the smart contacts through Etherscan by using the UI released for early users. For more information on how to wrap NU and KEEP tokens into T ones, we recommend using this dashboard and watching this video.
Where can I explore the network and create a Threshold wallet?
We recommend using Metamask wallet and the Etherscan explorer.
How long does it take to stake and unstake?
The lock-up period varies depending on the bonding time chosen by the token holder. From the moment you initiate the unbonding process, you will stop earning rewards. Once the process is complete, you can transfer/trade your T tokens.
Will I keep receiving rewards after I unbond?
No. Once you unbond you stop receiving rewards.
Which type(s) and what rate of rewards can I expect?
You should expect a minimum of 10% APY. Staking rates vary significantly and are determined by: The number of independent stakers, i.e. the number of nodes securing the network The break-even stake size counts the minimum number of tokens a staker must lock to avoid operating a loss.
When do rewards get distributed?
Rewards in Threshold are monthly.
Is staking income liquid or automatically staked?
Reward compounding in Threshold can be either automated or done manually.
Can I lose potential staking rewards?
Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking income.
Can my staked T be slashed (seized or destroyed)?
Threshold currently doesn’t enforce slashing. Once the tBTC v2 will be live on Mainnet, slashing penalties might be applied for certain offenses.
What is the rate of new issuance (aka "annual inflation") for T? How does the token supply change?
The initial supply is 100 billion tokens. The inflation rate will vary depending on the number of nodes and the break-even stake size, which is the minimum number of tokens that a staker has locked to avoid operating at a loss. Network inflation will fluctuate between 5% to 10% depending on how much of the circulating supply is being staked at that time.
What is the total supply of the T token?
The total supply of T tokens is 10,000,000,000. Currently, it has a circulating supply of 8,245,460,686 T.
What affects future rewards?
Threshold targets a minimum guaranteed APY of 10%, which might vary depending on the staking rate of the circulating supply: If the staking rate of the circulating supply is high, yields stabilize at the min. APY Yields increase when the staking rate is low so to incentive more staker to join the network.
Do I maintain custody of my T tokens?
Who or what controls my staked tokens? Yes, Figment is non-custodial, which means we are never in control of your staking income and staked asset. Figment has partnerships with a number of top-in-class custodians: For inquiries, please contact [email protected]
How are decisions about Threshold made and executed?
The Threshold DAO is based on Compound's GovernorBravo, and it consists of three bodies: The Staker DAO, as the name suggests, comprises all the stakers and gives voting power proportionally to the weight of their staked tokens. Stakers have the possibility to delegate votes, for approving or declining smart contract upgrades and certain protocol parameters. The Token Holder DAO is made up of T holders and those depositing into coverage pools. This DAO is in charge of managing the treasury, token issuance, and governance system change along with holding veto privileges over Staker DAO proposals. Both Staker DAO and Token Holder DAO have the possibility to delegate vote, add and execute proposals. The Multisig Council, made of 9 members, these change on a yearly basis and can be also voted out if they fail to fulfill their duties and/or act in a malicious way for the network or the community. The Multisig Coucil is responsible for managing staking rewards and veto proposals.
Last modified 5mo ago