Polkadot Community Proposes Bitcoin Strategic Reserve Using Treasury Funds
Members of the Polkadot community have submitted a new proposal to create a Bitcoin Strategic Reserve for the network’s Treasury.
The plan currently being discussed on the Polkadot governance forum proposes allocating 501,000 DOT (Polkadot’s native token) to gradually purchase tBTC, a decentralized, Bitcoin-backed token.
Under the proposal, the tBTC purchase will be carried out over a period of one year using Hydration’s Rolling Dollar-Cost Averaging (DCA) mechanism, providing a stable and risk-free entry into the Bitcoin position.
Once purchased, tBTC will be deposited into the Hydration Omnipool as liquidity, leveraging the Threshold Network’s custody-free Bitcoin bridge to maintain full decentralization and asset security.
Proponents of the proposal argue that the move would diversify the Treasury’s holdings, provide a hedge against market volatility, and promote cross-chain liquidity in the Polkadot ecosystem. The proposal is still in the discussion phase and has not yet been put to an on-chain vote.
*This is not investment advice.