The Polkadot community proposed to use 501,000 DOT to establish a Bitcoin reserve.

PANews, June 13 news, Polkadot community members proposed to establish a Bitcoin strategic reserve for the treasury, planning to use 501,000 DOT, of which 500,000 will be gradually converted into decentralized non-custodial BTC assets tBTC, and 1,000 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 small amounts of DOT daily and convert them into tBTC over the course of a year, while creating additional revenue for the treasury through the lending function. The trading frequency is once every 20 blocks, with a total trading volume of 500,000 DOT over the year, injecting into the liquidity pool after accumulating 0.25 tBTC. Although the proposal is considered a reasonable allocation of funds, accounting for about 2.8% of the total newly minted amount in the national treasury for the coming year, some community members have expressed doubts about its timing and effectiveness. Currently, the proposal is still in the forum discussion stage and has not been officially implemented.