Polkadot seeks stability with $2M Bitcoin reserve strategy amid DOT downturn
A brand new proposal throughout the Polkadot ecosystem is pushing for the creation of a Strategic Bitcoin Reserve.
In keeping with the proposal, the plan includes changing 500,000 DOT, valued at round $2 million, into Threshold Bitcoin (tBTC), a wrapped model of Bitcoin secured via threshold cryptography, which ensures decentralization and non-custodial administration.
Polkadot’s Bitcoin proposal
Earlier than conversion to Bitcoin begins, the five hundred,000 DOT will first be staked in aDOT, a yield-generating collateral token.
It will permit the treasury to earn returns on its DOT holdings whereas growing liquidity for DeFi borrowing.
Moreover, 1,000 DOT might be put aside to cowl transaction charges concerned in executing this technique.
From there, the Polkadot treasury would execute the BTC conversion steadily over a 12 months, utilizing Hydration’s rolling dollar-cost averaging (DCA) function. This methodology allows every day, incremental purchases to take care of a gradual Bitcoin influx.
As soon as sufficient tBTC is gathered, parts of it (0.005 tBTC per transaction) could be added as liquidity to the Hydration Omnipool. The proposal acknowledged:
“That is supposed as a primary step in direction of diversification into Bitcoin the place future proposals may embrace different bridged BTC property. The tBTC stays underneath the management of the Treasury and is meant to be maintained as a reserve, not a pool for funds.”
Supporters of the plan say the transfer would cut back publicity to market swings and create new alternatives for DeFi on Polkadot. The reserve can be designed to protect the treasury’s worth and guarantee ample funds for future budgets.
In the meantime, Polkadot’s transfer mirrors a broader business shift of organizations and governments viewing Bitcoin as a strategic reserve asset to hedge towards financial instability and forex devaluation.
Data compiled by Hodl15Capital exhibits that the highest 100 company holders of the highest crypto maintain greater than 818,000 Bitcoin of their coffers.
DOT’s worth struggles
Polkadot’s curiosity in constructing a Bitcoin reserve comes as its DOT token faces market challenges.
In keeping with CryptoSlate’s information, DOT’s worth has dropped 7% within the final 24 hours to $3.80, its lowest stage since October 2023.
In Bitcoin phrases, the token has fallen to an all-time low of 0.00003658 BTC, shedding over 62% of its worth prior to now 12 months.
Polkadot Market Information
On the time of press 5:42 pm UTC on Jun. 13, 2025, Polkadot is ranked #22 by market cap and the value is down 5.61% over the previous 24 hours. Polkadot has a market capitalization of $6.08 billion with a 24-hour buying and selling quantity of $349.58 million. Study extra about Polkadot ›
Crypto Market Abstract
On the time of press 5:42 pm UTC on Jun. 13, 2025, the full crypto market is valued at at $3.29 trillion with a 24-hour quantity of $176.63 billion. Bitcoin dominance is at present at 63.89%. Study extra in regards to the crypto market ›
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