Polkadot community proposes to use 501000 DOTs to establish Bitcoin reserves

PANews|Jun 13, 2025 07:24
Polkadot community members propose to establish a Bitcoin strategic reserve for the national treasury, with plans to use 501000 DOTs, of which 500000 will be used to gradually convert to decentralized non custodial BTC assets tBTC and 1000 will be used for transaction fees. The proposal aims to enhance the long-term stability and risk resistance of the national treasury through asset diversification.
The specific implementation method is to use the Rolling DCA mechanism of the Hydration protocol to sell DOT in small amounts daily within one year and convert it into tBTC, while creating additional revenue for the national treasury through the lending function. The transaction frequency is once every 20 blocks, and the total annual transaction volume is 500000 DOT. After accumulating 0.25 tBTC, it is injected into the liquidity pool.
Although the proposal is considered a reasonable allocation of funds, accounting for about 2.8% of the total amount of new casting in the national treasury in the coming year, some community members have questioned its timing and effectiveness. At present, the proposal is still in the forum discussion stage and has not yet been officially implemented.
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