POLKADOT COMMUNITY EYES BITCOIN RESERVE USING 501,000 DOT

- The Polkadot community floated a proposal to create a Bitcoin reserve using 501,000 $DOT.

Key Details:

- The proposal plans to convert 500,000 DOT into tBTC, a Bitcoin-backed token on Ethereum, using Hydration’s automated rolling DCA method.

- According to the proposal, the system auto-renews purchases to add 0.005 tBTC to Hydration Omnipool via Threshold’s non-custodial bridge.

- At the proposed rate, 1 DOT would equal roughly 0.000041 tBTC. Beyond giving Polkadot Treasury exposure to Bitcoin, this move could boost on-chain liquidity and strengthen incentives in the Polkadot DeFi ecosystem.

- This idea comes as many governments and major companies pile Bitcoin into their reserves.

- According to some community members, DOT has lost about 60% of its value against BTC since January.

- If the Treasury had started DCA into Bitcoin six months ago, it could have seen gains around $1.5 million despite DOT’s drop.

- The proposal is still under community discussion and hasn’t reached a vote.

- Meanwhile, regulatory uncertainty continues: the US SEC has again delayed decisions on ETFs for Polkadot and Hedera, pushing review deadlines to September 2025.

- The agency wants more time to assess public comments and issues before approving or rejecting these crypto ETFs.