Polkadot community split on selling 500K DOT for Bitcoin reserve

A Polkadot governance connection to person 500,000 DOT tokens to Threshold Bitcoin (tBTC) for diversification and semipermanent stableness has received mixed reactions from assemblage members.

While immoderate judge Bitcoin (BTC) volition service arsenic a hedge against marketplace uncertainty, others stay skeptical astir the timing amid all-time precocious BTC prices.

In aboriginal June, pseudonymous Polkadot assemblage subordinate “hippiestank” projected the instauration of an archetypal Bitcoin strategical reserve implicit the people of 1 year. Upon statement from the community, the connection volition merchantability 500,000 Polkadot (DOT) tokens and reinvest it into BTC utilizing a dollar-cost averaging (DCA) strategy.

Polkadot connection for a Bitcoin reserve. Source: Polkadot forum

Threshold BTC (tBTC) is simply a non-custodial solution utilizing threshold-(Elliptic Curve Digital Signature Algorithm (ECDSA) wallets, which Polkadot could usage for maintaining its decentralization, liquidity and transparency. 

Planning up for marketplace uncertainties

In the forum discussion, portion acknowledging DOT’s mediocre terms show successful 2025, respective Polkadot assemblage members believed a Bitcoin reserve could assistance cushion the ongoing free-fall.

On the different hand, immoderate questioned the timing of the proposal, considering that DOT is presently trading astatine 1 of its lowest prices, portion Bitcoin stands beardown supra $100,000. The connection argued:

“I judge the ‘DOT ATL, BTC ATH’ statement misframes the situation. This connection is astir hazard absorption and operational continuity, not marketplace timing oregon speculation.”

The proposer further warned that Polkadot volition ne'er beryllium capable to diversify if members stay hellbent connected waiting for the cleanable timing. Additionally, the assemblage showed involvement successful diversifying into antithetic plus classes and not solely relying connected Bitcoin.

Weighing the benefits of Bitcoin strategical reserve 

However, skeptics demanded further clarification.

“I conscionable don’t spot however we tin bash this and for it to truly supply immoderate value, abbreviated oregon agelong term,” 1 assemblage subordinate said. “Even with astonishing yields, it’s apt to bash much harm than bully with the further downward unit that we’re already contending with from different DCAs mixed with a deficiency of interest.”

The subordinate besides urged the proposer to impact a wider radical of members connected X earlier coming to a last decision:

Polkadot assemblage subordinate calls for unfastened treatment astir Bitcoin strategical reserve. Source: Polkadot forum

While discussions are underway, the Polkadot assemblage volition yet person to ballot and finalize the instauration of diversified strategical reserves.

The assemblage precocious gave the motion to the launch of a Polkadot-branded non-custodial outgo card, which is usable connected services accepting Visa.

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