$DOT The Polkadot community is currently discussing a proposal to invest 2 million dollars in Bitcoin. This proposal aims to create a Bitcoin reserve for the Polkadot treasury, with the goal of diversifying treasury assets and achieving long-term financial stability, especially given the challenges facing the DOT token in the market currently.
🌟Main proposal details:
⚡Amount: The proposal aims to convert 500,000 DOT tokens (worth approximately 2 million dollars) into tBTC, which is a wrapped version of Bitcoin on the Ethereum network. An additional 1,000 DOT tokens are allocated to cover transaction fees.
⚡Goal: Proponents of the proposal believe that adding Bitcoin as a reserve will help reduce exposure to market volatility, maintain the value of the treasury, and provide liquidity to fund future projects in the Polkadot decentralized finance (DeFi) ecosystem.
⚡Implementation mechanism: DOT will be gradually converted to tBTC over the course of a year using a dollar-cost averaging (DCA) strategy through the automated Hydration system, in order to minimize market impact.
🌟Discussion and controversy: The community is divided on the proposal. Some support the idea as a risk management measure and a way to enhance stability, while others question the timing of the investment, especially given the current performance of DOT and Bitcoin reaching high levels.
The proposal is still under discussion in the Polkadot governance forums, and no voting date has been set yet. The community vote will ultimately determine whether this investment will proceed or not😎😎.
