The Polkadot community is discussing a significant proposal aimed at diversifying its treasury and supporting decentralized finance (DeFi).
Creating a Bitcoin Reserve for the Polkadot Treasury
The proposal involves converting 500,000 DOT held in the Polkadot treasury into tBTC over the course of a year using the "Rolling DCA" mechanism from the Hydration protocol. The acquired tBTC assets will be added to liquidity in the Omnipool via a secure bridge technology from the Threshold Network.
Background and Expectations of the Proposal
The proposal was initiated following Referendum #1394, known as "Wish-For-Change". A community member highlighted Bitcoin's strong performance as an asset, framing this conversion as a hedging strategy amid market uncertainties and signaling support for a multi-blockchain future.
Current Status of Discussions
The proposal is currently under discussion in the forum and is expected to be formally voted on-chain at the beginning of next week.
The proposed conversion of DOT into tBTC represents a significant step for the Polkadot community, potentially strengthening its market position and fostering DeFi development.
