The Polkadot community proposed to use 501,000 DOT to establish a Bitcoin reserve
ChainCatcher news, Polkadot community members have 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 asset tBTC, and 1,000 will be used for transaction fees. The proposal aims to enhance the long-term stability and risk resistance of the treasury through asset diversification.The specific execution method is to utilize the Rolling DCA mechanism of the Hydration protocol, selling small amounts of DOT daily over the course of a year and converting them into tBTC, while also generating additional income for the treasury through lending functions. The trading frequency will be once every 20 blocks, with a total trading volume of 500,000 DOT for the year, injecting liquidity into the pool after accumulating 0.25 tBTC.Although the proposal is considered a reasonable allocation of funds, accounting for about 2.8% of the total new minting of the treasury in 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 yet been formally implemented.
