A Polkadot governance proposal to transform 500,000 DOT tokens to Threshold Bitcoin (tBTC) for diversification and long-term stability has obtained blended reactions from neighborhood members.
Whereas some imagine Bitcoin (BTC) will function a hedge towards market uncertainty, others stay skeptical concerning the timing amid all-time excessive BTC costs.
In early June, pseudonymous Polkadot neighborhood member “hippiestank” proposed the creation of an preliminary Bitcoin strategic reserve over the course of 1 yr. Upon consensus from the neighborhood, the proposal will promote 500,000 Polkadot (DOT) tokens and reinvest it into BTC utilizing a dollar-cost averaging (DCA) technique.
Threshold BTC (tBTC) is a non-custodial resolution using threshold-(Elliptic Curve Digital Signature Algorithm (ECDSA) wallets, which Polkadot might use for sustaining its decentralization, liquidity and transparency.
Planning forward for market uncertainties
Within the discussion board dialogue, whereas acknowledging DOT’s poor value efficiency in 2025, a number of Polkadot neighborhood members believed a Bitcoin reserve might assist cushion the continued free-fall.
However, some questioned the timing of the proposal, contemplating that DOT is presently buying and selling at one in every of its lowest costs, whereas Bitcoin stands robust above $100,000. The proposal argued:
“I imagine the ‘DOT ATL, BTC ATH’ argument misframes the scenario. This proposal is about threat administration and operational continuity, not market timing or hypothesis.”
The proposer additional warned that Polkadot won’t ever be capable to diversify if members stay hellbent on ready for the right timing. Moreover, the neighborhood confirmed curiosity in diversifying into completely different asset lessons and never solely counting on Bitcoin.
Weighing the advantages of Bitcoin strategic reserve
Nevertheless, skeptics demanded additional clarification.
“I simply don’t see how we will do that and for it to actually present any worth, quick or long run,” one neighborhood member mentioned. “Even with wonderful yields, it’s more likely to do extra hurt than good with the extra downward stress that we’re already contending with from different DCAs blended with an absence of curiosity.”
The member additionally urged the proposer to contain a wider group of members on X earlier than coming to a closing resolution:
Whereas discussions are underway, the Polkadot neighborhood will finally should vote and finalize the creation of diversified strategic reserves.
The neighborhood just lately gave the nod to the launch of a Polkadot-branded non-custodial cost card, which is usable on companies accepting Visa.
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