During the Web3 Summit opening, Polkadot co-founder Gavin Wood unveiled plans for a new decentralized stablecoin fully collateralized by the DOT token.
Announcement of Stablecoin Launch
On July 17, 2025, at the opening of the Web3 Summit, Gavin Wood announced an ambitious plan to introduce a new decentralized stablecoin fully collateralized by the native DOT token. This launch marks a significant step towards enhancing capital efficiency and scalability within the Polkadot ecosystem.
Positive Market Reaction
The announcement generated positive market sentiment, with DOT rising by 1.54% in 24 hours, peaking at $4.26 before a slight pullback to $4.19. The token’s weekly performance remains strong with a 14.7% gain and a market capitalization of about $6.3 billion. Additionally, Polkadot’s daily trading volume surged nearly 31% to about $500 million, reflecting growing investor interest ahead of the stablecoin rollout.
History and Prospects of Polkadot
Wood revealed that the project team is working on a treasury proposal to secure initial liquidity. This proposal will be subjected to community review, requiring majority approval by DOT token holders before proceeding to deployment. If approved, it will become the first stablecoin to be formally launched with sole backing from DOT.
Polkadot’s new stablecoin initiative aims to enhance decentralization and stability within the network. This transformation could positively impact market dynamics for DOT holders.
