Polkadot Community Proposes Bitcoin Reserve to Enhance Treasury Stability

Polkadot community members have proposed incorporating Bitcoin into the Polkadot Treasury as a strategic reserve strategy. This proposal, stemming from the Wish-For-Change referendum, aims to diversify the treasury and enhance stability by establishing a 500,000 DOT Bitcoin reserve over the next year using Hydration’s rolling DCA feature. The community envisions converting these DOT into tBTC, a non-custodial solution using threshold-ECDSA wallets, ensuring decentralization and transparency. They also intend to use the funds to increase liquidity in the Hydration Omnipool. 500,000 DOT will be supplied as liquidity after accumulating for a short period, according to the proposal. This move aims to diversify the Polkadot Treasury portfolio and support DeFi incentives within the ecosystem. The community highlights Bitcoin’s performance during the past decade and sees it as an opportunity to hedge against market uncertainty, while signaling their commitment to multi-chain development. The proposal emphasizes risk management and operational continuity rather than speculation or timing.