Polkadot Community Proposes to Allocate 501,000 DOT to Establish a Bitcoin Reserve

Members of the Polkadot community have proposed establishing a Bitcoin strategic reserve for the treasury, planning to allocate 501,000 DOT, of which 500,000 DOT would be gradually converted into decentralized, non-custodial BTC assets (tBTC), and 1,000 DOT would be used for transaction fees. The proposal aims to enhance the treasury’s long-term stability and risk resilience through asset diversification.

The specific execution method involves using the Hydration protocol’s Rolling DCA mechanism to sell small amounts of DOT daily over the course of a year and convert them into tBTC, while also generating additional income for the treasury through lending features. Transactions would occur every 20 blocks, with a total annual trading volume of 500,000 DOT, and every time 0.25 tBTC is accumulated, it would be injected into the liquidity pool.

Although the proposal is considered a reasonable allocation of funds—accounting for about 2.8% of the treasury’s newly minted supply over the next year—some community members have expressed doubts about its timing and effectiveness. The proposal is currently still under discussion in the forum and has not yet been officially implemented.