Alice and Bob are preparing to initiate a proposal on-chain to gradually convert 500,000 DOT into tBTC!
This is a response to the community's previously initiated Wish-For-Change referendum proposal #1394, which has already passed!
So, they are officially proposing a new initiative this week aimed at introducing Bitcoin reserves to the Polkadot treasury. For detailed information, see this link: docs.google.com/document/d/1Fi…
The specific plan is to gradually convert 501,000 DOT into tBTC within a year (with 1,000 DOT reserved for fees). The conversion process will be implemented through the 'rolling DCA' feature provided by Hydration. After a short accumulation period, the system will gradually provide liquidity to Hydration's Omnipool in units of 0.005 tBTC. This move will help diversify the asset portfolio of the Polkadot treasury while also supporting DeFi incentives within the ecosystem.
As one of the strongest performing assets over the past decade, Bitcoin still possesses strong performance potential. Through this proposal, Polkadot has the opportunity to signal to the broader crypto industry that we support a future vision of multi-chain coexistence while addressing future uncertainties.
They are expected to submit this proposal for on-chain voting early next week! However, submitting the revised proposal on the Root track requires a decision deposit of 100,000 DOT. Alice and Bob are looking for a decision deposit of 100,000 DOT and have indicated that they have involved all relevant parties to ensure clarity and compliance in the process. Now, they just need the decision deposit. If interested, please contact via TG/Element/Twitter DM → @alice_und_bob
Additionally, a community member posted on the forum questioning the reasonableness of the upcoming proposal to 'sell DOT to buy BTC':
🔻 Currently, DOT is at a historical low while BTC is at a historical high. Selling DOT at this time would send an extremely negative signal to the market: do we not believe in DOT ourselves?
🔻 The Polkadot treasury currently holds $122 million in assets. The issue is not a lack of funds but how to utilize them effectively.
🔻 Previously, exchanging DOT for BTC has only yielded about 2.46% annualized returns. Even if executed now, a doubling of BTC would only increase the treasury's assets by 1.58%.
In summary, we should focus more on increasing the demand for DOT and reducing circulation, rather than further increasing selling pressure and expanding the treasury's scale.
What do you think? Feel free to join the discussion here: forum.polkadot.network/t/bitcoin-rese…