The Decentralized Autonomous Organization (DAO) has recently shown strong support for a proposal aimed at adopting a revenue-sharing system, which would facilitate a zero-fee Bitcoin bridge to the Cosmos ecosystem through Nomic. This initiative has garnered significant community backing, with approximately 92% of DAO members voting in favor of the zero-fee upgrade. A small fraction, about 6%, chose to abstain from voting, and only 1% opposed the proposal.

The voting process is set to conclude at 23:58 UTC on June 21. If the proposal receives the necessary approval, the implications for Osmosis users will be noteworthy. Specifically, users will no longer incur bridging fees or transfer fees for transactions involving nBTC between Nomic and Osmosis. This change will be executed through a future software update, contingent on approval from both Nomic and Osmosis governance bodies.

This initiative aims to establish a novel standard in bridge business models. Historically, bridges have faced challenges in capturing value directly from the movement of assets. The proposed upgrade for Osmosis addresses this challenge by aligning Nomic’s protocol revenue with the actual use of its Bitcoin bridge, creating a more sustainable and user-friendly model.

According to a recent post discussing the proposal, the new system introduces a protocol revenue share mechanism. This system will replace the traditional bridging costs with a share of the taker fees collected from trading activities on Osmosis. As a result, Nomic will benefit from the increased use of nBTC across various applications on Osmosis, rather than just relying on arbitrage opportunities against native Bitcoin.

This user-focused upgrade is anticipated to provide significant advantages for users. It will allow them to leverage their Bitcoin holdings for various DeFi activities on Osmosis, including lending, borrowing, and staking. Moreover, it integrates Bitcoin more seamlessly into the broader DeFi ecosystem, which is expected to attract both new and existing users.

This shift towards a zero-fee model marks a significant development in the way bridges operate, potentially leading to broader adoption and more extensive use of Bitcoin in DeFi applications. The move aligns the interests of the protocol with the needs of its users, fostering a more inclusive and efficient ecosystem.

The overwhelming support for this proposal indicates a strong community consensus on the benefits of the zero-fee upgrade. By eliminating fees, the proposal aims to lower barriers to entry, making it easier and more cost-effective for users to engage with DeFi services on Osmosis.

This new approach could set a precedent for other protocols looking to enhance user experience and drive adoption. By focusing on a revenue-sharing model that benefits from increased activity rather than direct fees, the proposal aligns the success of the protocol with the growth and engagement of its user base.

The proposed upgrade is expected to enhance the utility of Bitcoin within the Cosmos ecosystem significantly. By providing a fee-free bridge, the initiative encourages more users to transfer and utilize their Bitcoin holdings within DeFi applications, driving further innovation and participation in the space.

The support from the DAO underscores the community’s commitment to creating a more accessible and user-friendly ecosystem. As the proposal moves towards final approval, it represents a significant step forward in the evolution of DeFi and cross-chain interoperability.

In summary, the community-backed proposal for a zero-fee Bitcoin bridge to the Cosmos ecosystem via Nomic has received strong support, with the potential to transform the way bridges operate and integrate Bitcoin into DeFi applications. The initiative focuses on aligning protocol revenue with user activity, promising a more inclusive and efficient ecosystem for all users.