Recently, the Polkadot community has been divided over a proposal that aims to convert 500,000 Polkadot native tokens DOT into threshold Bitcoin (tBTC) through a one-year dollar-cost averaging (DCA) strategy.
In early June, a Polkadot community member under the pseudonym “hippie stank” proposed the suggestion of creating an initial Bitcoin strategic reserve within one year. If the community reaches a consensus, the proposal will sell 500,000 DOT tokens and adopt the DCA strategy to reinvest them in Bitcoin. Threshold Bitcoin (tBTC) is a non-custodic solution that utilizes the thresholding Elliptic Curve Digital Signature Algorithm (ECDSA) wallet, through which Polkadot can maintain its decentralization, liquidity, and transparency.
Some community members believe that Bitcoin can serve as a hedging tool against market uncertainties and help cushion the current market predicament faced by Polkadot. However, some members expressed doubts about the timing of this proposal, as DOT is currently at a historical low, while the price of Bitcoin is above $100,000, at a historical high. A community member said, “I don’t think doing so can provide any value in the short or long term. Considering that we are already facing downward pressure from other Dcas and a lack of market interest, this might do more harm than good.” The member also urged the proposer to discuss with a wider range of members on social media platform X before making a final decision.
Although the discussion is still ongoing, the Polkadot community will eventually decide through a vote whether to create a diversified strategic reserve. In addition, the community has just recently approved the launch of an unmanaged payment card under the Polkadot brand, which can be used in services that accept Visa.
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