Polkadot community proposes to use 501,000 DOTs to set up Bitcoin reserves
PANews reported on June 13 that Polkadot community members proposed to set up a strategic Bitcoin reserve for the treasury, planning to use 501,000 DOTs, of which 500,000 will be used to gradually convert to decentralized non-custodial BTC assets tBTC, and 1,000 will be used for transaction fees. The proposal aims to enhance the long-term stability and risk resistance of the 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 every day for one year and convert it into tBTC, while creating additional income for the treasury through the lending function. The transaction frequency is once every 20 blocks, and the total transaction volume for the whole year is 500,000 DOT. After every accumulated 0.25 tBTC, it will be injected into the liquidity pool.
Although the proposal is considered a reasonable allocation of funds, accounting for about 2.8% of the total new minting in the treasury over the next year, some community members have questioned its timing and effectiveness. The proposal is still in the forum discussion stage and has not yet been officially implemented.
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