DAO representatives: @Vict0r , @JohnPackel , @mcitizen42
TL,DR
To eliminate unnecessary costs and in light of TACo preparing to find a new home outside Threshold per TIP-100, we propose ending Beta Staker Program compensation to TACo nodes that do not hold customer key material. This change will not affect tBTC node operations and will save the DAO $10,000/month.
The Original Beta Stakers & TIP-067 Expansion
The original beta stakers were onboarded to have a reliable set of nodes for tBTC v2. In December 2023, TIP-067 expanded this group by including selected professional and community operators, who were compensated to run nodes supporting these decentralized systems. While this approach successfully jump-started the network, it was always intended as a temporary measure until implementation of Schnoor signatures allowed the network to attribute fault to specific nodes. With TIP-92 ending staking rewards for tBTC and carving out a 6-month continuation for TACo, the original beta stakers were to be added to the payment schedule established for TIP-067 participants.
Current Beta Staker Compensation: $76,500/month
- Boar: 6 nodes = $12,000
- P2P: 6 nodes = $12,000
- Staked: 6 nodes = $12,000
- 10 (TIP-067 part 1) “professional” operators = $19,500
- 7 (TIP-067 part 2) “community” operators = $21,000
New Beta Staker Compensation: $66,500/month End payments to 20 TACo nodes that are not currently holding key material, per list vetted by the TACo team
- Operators may continue running these nodes without DAO beta staker compensation or shut them down
- New breakdown of monthly beta staker expenses
- Boar: $10,000
- 6 tBTC nodes @ $1,500 each
- 2 TACo nodes @ $500 each
- P2P: $9,500
- 6 tBTC nodes @ $1,500 each
- 1 TACo node @ $500
- Staked: $10,000
- 6 tBTC nodes @ $1,500 each
- 2 TACo nodes @ $500 each
- 10 (TIP-067 part 1) “professional” operators: $18,000
- 10 tBTC nodes @ $1,500 each
- 6 TACo nodes @ $500 each
- 7 (TIP-067 part 2) “community” operators: $19,000
- 7 tBTC nodes @ $2,500 each
- 3 TACo nodes @ $500 each
- Boar: $10,000
Rationale
In TACo, only nodes that are randomly selected through Distributed Key Generation (DKG) actively participate in access control operations. Due to the randomized nature of the DKG protocol, some nodes were not selected during recent customer onboarding events. These 20 DAO-sponsored nodes are not contributing to the system’s current functionality and thus are not a justified ongoing cost to the DAO.
- Only TACo nodes are affected by this proposal — there is no impact to any tBTC nodes
- The TACo team identified a set of 20 node addresses that are not currently holding customer key material
- Affected nodes include:
- 4 community operators (TIP-067 part 2)
- 3 professional operators (TIP-067 part 1)
- 13 professional operators from the original tBTC v2 launch cohort
- Affected nodes include:
- This is the first step in the plan to fully sunset TACo from the Threshold Network during Q3 2025. At that point, remaining TACo nodes in the beta staker program will no longer be funded. The TACo team is currently building a secure and permissionless exit protocol that will allow active customers to migrate their access control configurations. The DAO will continue to receive progress updates from the TACo team until the migration is completed. Once the migration is complete, all TACo-related compensation through the beta staker program will be fully phased out
- This decision is operational, not performance-based—nodes are being decommissioned because they happen not to be holding key shares
- Affected providers will be notified directly with the list of specific node addresses
- Important note to operators: Do not shut down any tBTC or TACo nodes unless explicitly instructed. Maintain backups (including mnemonic/seed phrases) of any shut-down node through the end of the transition period
