Polkadot Community Proposes Strategic Bitcoin Reserve with 500,000 DOT Conversion to tBTC

On June 13, COINOTAG News reported a new proposal on the Polkadot forum by community members jump_BAHA_jump and Alice_und_Bob, aiming to establish an initial Bitcoin strategic reserve within the Polkadot treasury. This initiative aligns with the community’s directive from referendum #1394, known as “Wish for Change,” which advocates for enhanced treasury resilience through diversified asset allocation. The proposal suggests converting 501,000 DOT tokens, with 500,000 DOT earmarked for conversion into tBTC and 1,000 DOT allocated for transaction fees.

The conversion process will utilize the Dollar-Cost Averaging (DCA) strategy via the Hydration Protocol, spreading the acquisition of tBTC over a 12-month period to mitigate market volatility. The resulting tBTC tokens, a decentralized and non-custodial Bitcoin representation secured by Threshold Network’s threshold ECDSA wallet, will be injected as liquidity into the Hydration Omnipool. This measured approach aims to bolster the Polkadot treasury’s long-term stability and risk management capabilities.