Cosmos DAO Osmosis to Adopt Fee-Free Bitcoin Bridge

A revenue sharing agreement could address the shortcomings of blockchain bridges, where parties must generate revenue from direct deposits and withdrawals.

The goal is to remove some of the friction users may have previously experienced when connecting their bitcoin holdings to other ecosystems for decentralized finance-related activities.

Decentralized autonomous organization (DAO) Osmosis has voted to adopt a free Bitcoin bridge to allow Bitcoin {{BTC}} to be migrated into the Cosmos ecosystem.

Key to the process is a revenue-sharing agreement with Bitcoin bridge Nomic, according to an announcement emailed to CoinDesk on Friday. A bridge is a way to improve the interoperability of blockchains by allowing users to move crypto assets from one system to another.

A revenue sharing agreement could address one of the shortcomings of bridges: how different parties generate revenue from deposits and withdrawals. The announcement noted that the proposed deal would align Nomic’s protocol revenue with bridged BTC usage.

The aim is to eliminate some of the friction users may have previously experienced when connecting their bitcoin holdings to other ecosystems for decentralized finance-related (DeFi) activities.

With less than 24 hours left in voting, 95% of the Osmosis DAO community voted in favor of the deal.

Nomic’s bridge is part of a trend of developers seeking to leverage the value tied to BTC, the largest cryptocurrency by market cap, to provide liquidity to the broader digital asset industry. In April, Nomic announced plans to integrate Babylon’s Bitcoin staking protocol and introduce stBTC, a bitcoin liquid staking token.

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