As publicly traded companies continue to integrate bitcoin into their balance sheets, cryptocurrency communities like Cardano and Polkadot have discussed echoing this strategy by implementing the leading digital currency into their own operations.
Altcoin teams seek Bitcoin for DeFi power and Treasury support
This week, the Polkadot community is considering a proposal to gradually exchange 500,000 DOT for bitcoin (BTC) over the course of a year, applying a dollar-cost averaging (DCA) approach to facilitate the transition. The intent is to establish a reserve of bitcoin aimed at sustaining long-term stability and boosting DeFi-related incentives. The proposal is under discussion in Polkadot's governance forums and on social media, with no final decision yet.
Additionally, the conversation includes the potential use of the wrapped bitcoin (BTC) token from the Threshold Network, tBTC. At current rates, the conversion of 500,000 DOT would yield just over 18 BTC. "This proposal will convert 500,000 DOT into BTC over the course of a year using Hydration's 'rolling DCA' feature," the proposal states. "After a short accumulation period, blocks of 0.005 tBTC will be provided as liquidity to Hydration's Omnipool."
The proposal adds:
This will allow for the diversification of the Polkadot Treasury portfolio and, at the same time, support the incentives of the DeFi ecosystem.
In parallel to this, in a recent YouTube video, Charles Hoskinson outlined a vision for building a decentralized sovereign fund for Cardano, proposing to allocate a portion of its treasury — approximately $100 million in ADA — for diversification into stablecoins like USDA and iUSD, as well as bitcoin (BTC). Mirroring the model of traditional sovereign funds, this could generate yield, with returns channeled back into the Cardano ecosystem.
Moreover, Hoskinson notes that this could boost the network's DeFi, focused on BTC, by seeding it with liquidity in bitcoin. Although these proposals remain speculative, they signal a subtle yet notable shift: even altcoin ecosystems seem increasingly drawn to bitcoin as a foundation for long-term resilience. Regardless of whether this results in total treasury reallocations or not, the conversation itself suggests that, behind the branding wars, some communities may discreetly recognize the importance of bitcoin — and possibly its role as the ultimate reserve asset in crypto finance.
