Members of the Polkadot community have submitted a new proposal to create a Bitcoin Strategic Reserve for the network's Treasury.
Polkadot Community Proposes Bitcoin Strategic Reserve Using Treasury Funds
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.