According to PANews, members of the Polkadot community have proposed establishing a strategic Bitcoin reserve for the treasury. The plan involves utilizing 501,000 DOT, with 500,000 DOT allocated for gradual conversion into decentralized non-custodial BTC assets, known as tBTC, and 1,000 DOT designated for transaction fees. The proposal aims to enhance the long-term stability and risk resistance of the treasury through asset diversification.
The execution strategy involves using the Hydration protocol's Rolling DCA mechanism to sell small amounts of DOT daily over a year and convert them into tBTC. Additionally, the treasury would generate extra income through lending functions. Transactions are set to occur every 20 blocks, with a total annual transaction volume of 500,000 DOT. Once 0.25 tBTC is accumulated, it will be injected into a liquidity pool.
While the proposal is considered a reasonable allocation of funds, accounting for approximately 2.8% of the treasury's new minting volume for the coming year, some community members have expressed concerns about its timing and effectiveness. The proposal is currently under discussion in forums and has not yet been officially implemented.
