Threshold

The T token has two primary functions within the Threshold network. First, it is a utility token that is used to stake nodes. Node operators receive fees from the various applications that rely on Threshold's cryptographic primitives. Second, the T token is a governance token, allowing users to participate in the decision-making process of the Threshold DAO by locking their tokens in coverage pools. By underwriting collateral risk in the network, users can earn yield in exchange. What are Threshold's cryptographic primitives and their use cases? Threshold provides a suite of advanced cryptographic building blocks that enable a range of applications and use cases: Proxy re-encryption (PRE): Allows data to be securely shared and transferred between parties without the original owner's direct involvement. Threshold signatures (TSS): Enables the creation of digital signatures in a decentralized manner, where multiple parties must collaborate to sign a message. Distributed key generation (DKG): Allows for the creation of cryptographic keys in a distributed fashion, improving security and resilience. Random beacon (RB): Provides a source of randomness that is verifiable and tamper-resistant, crucial for applications requiring provable fairness.

The Threshold Network has an initial total supply of 10 billion T tokens. The distribution of the tokens is as follows: 4.5 billion allocated to NU (NuCypher) holders 4.5 billion allocated to KEEP (Keep Network) holders 1 billion allocated to the Threshold DAO The network has provided vending machine contracts with static conversion ratios to allow NU and KEEP holders to upgrade their tokens to T at their own pace, without any time pressure or disadvantage. Existing stakers in the legacy networks are also accommodated through special staking adapters to ensure a smooth transition to the Threshold Network.

The Threshold Network was formed through the decentralized on-chain merger of the Keep Network and NuCypher. The idea to merge the two networks was first proposed by the community in February 2021, and the final proposal (rc0) was approved in June 2021 by both the Keep and NuCypher communities through a snapshot vote. This community-driven initiative reflects Threshold's commitment to decentralized governance, where the terms of the merger were carefully planned and executed with input from both merging communities.