Polkadot Eyes Bitcoin Reserve via tBTC Liquidity Plan

  • Proposal allocates 501,000 DOT to tBTC via Hydration’s Rolling DCA over 12 months.

  • Converted tBTC added to Hydration Omnipool using Threshold non-custodial bridge.

  • Still in forum debate; not on-chain or funded yet.

Polkadot community members are discussing a proposal to bolster the network’s treasury with a strategic Bitcoin reserve. The idea is to deploy 501,000 DOT—Polkadot’s native token—over a 12‑month period to acquire tokenized Bitcoin (tBTC). This effort would use Hydration’s Rolling Dollar‑Cost Averaging (DCA) mechanism, spreading purchases evenly to mitigate market volatility.

tBTC Liquidity via Hydration & Threshold Bridge

Once acquired, tBTC would be supplied to Hydration’s Omnipool, enhancing cross‑chain liquidity and supporting ecosystem activity. Conversion from DOT to tBTC relies on Threshold Network’s non‑custodial Bitcoin bridge—emphasizing decentralized custody and security in the reserve strategy.

Still in Forum Stage – Not Yet On-Chain

As of now, the initiative remains under forum debate on the Polkadot network; it hasn’t progressed into a formal proposal or on‑chain referendum. Community members are discussing mechanics, risks, and treasury implications before any official launch.

Polkadot community members proposed creating a Bitcoin Strategic Reserve for the Treasury. The plan suggests using 501,000 DOT to gradually purchase tBTC over one year via Hydration’s Rolling DCA mechanism. The tBTC would be added to Hydration Omnipool as liquidity using…

— Wu Blockchain (@WuBlockchain) June 13, 2025

Why This Matters

Creating a Bitcoin reserve via tBTC could:

  • Protect treasury value with a proven asset.

  • Drive cross‑chain growth by boosting Omnipool liquidity.

  • Strengthen treasury diversification and long‑term strategy.

But there are considerations: tBTC slippage, Bridge fees, and exposure to DOT price drops.

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