The Kusama 521 proposal is currently being voted on, aiming to introduce an Asset Rate mechanism, similar to an 'internal conversion rate', to set the reference value of DOT in the treasury expenditure calculation of Kusama. The proposed conversion ratio is: 1 KSM = 4 DOT. It is important to note that this conversion ratio is not the market price but a governance-level parameter that can be adjusted according to future market conditions through governance mechanisms!
For example, you will know what this means! When you apply for funds on the MediumSpender track of the Kusama treasury, your KSM application limit is 3,333 KSM, but if you want to apply for DOT assets on this track, your application limit will be 13,332 DOT!
In fact, similar proposals have already occurred in the Polkadot network. When the Polkadot treasury introduced USDC and USDT assets, their conversion ratio was 1 DOT = 10 USDC/T, so you can see that in the MediumSpender track, the limit for DOT is 100,000 DOT, and the limit for USDC/USDT is 1,000,000.
In summary, once this proposal is passed, in addition to resolving the above issues, it will also bring several key impacts that are significant for Kusama and the entire Polkadot ecosystem:
✅ Kusama treasury can officially receive and use DOT
This is a historic step, meaning that Kusama's treasury system is no longer limited to KSM and can manage and use cross-chain assets. Future project funding can be issued directly in DOT, which may attract teams holding DOT to participate in Kusama's governance and ecological construction.
✅ Laying the foundation for future multi-asset treasury management
This is not only a green light for DOT but also provides a standard path for supporting more assets (such as USDT, USDC, BTC) into the treasury in the future.
Kusama will become a more flexible treasury platform that can introduce different sources and types of funds to participate in ecological development.
✅ Practical application of the Polkadot <> Kusama trust bridge
The proposal demonstrates the true value of the Polkadot <> Kusama trustless bridge + XCM cross-chain mechanism: not only can it transfer assets but also co-govern the treasury.
Kusama and Polkadot are no longer 'two skins' but can interoperate assets and cooperate in governance.
✅ Attract DOT users to participate in the Kusama ecosystem
In the future, it may allow users, developers, and project parties holding DOT to participate directly in the governance of Kusama without converting to KSM.
Kusama → The new era of multi-asset treasury begins 🧩🔥
PolkaWorld has already voted in support! Vote here: kusama.subsquare.io/referenda/521