The Polkadot governance community is engaged in a pivotal debate over a proposal to diversify the network’s treasury holdings by converting 500,000 DOT tokens into Bitcoin. The plan recommends executing the conversion via Threshold Bitcoin (tBTC) using a 12-month dollar-cost averaging (DCA) strategy to minimize market timing risks.
The proposal specifically advocates for tBTC due to its decentralized, non-custodial design, which aligns with Polkadot’s foundational principles. Supporters argue that Bitcoin’s market stability and established network make it an optimal reserve asset for enhancing treasury resilience amid cryptocurrency volatility.
Critics have raised concerns about executing the conversion while DOT trades at relative lows and Bitcoin valuation remains high, cautioning that large-scale DOT sales could exert downward price pressure. Others emphasize the need for broader community consensus before implementation.
Discussions continue as the community evaluates the implications of this strategic shift. A formal governance vote will ultimately determine whether Polkadot’s treasury adopts the proposed Bitcoin diversification strategy.