Polkadot’s governance community is evaluating a proposal to convert 500,000 DOT tokens into Threshold Bitcoin (tBTC) over a one-year period using a dollar-cost averaging (DCA) strategy. The initiative aims to diversify the network’s treasury holdings by gaining Bitcoin exposure for long-term risk management purposes.
The conversion would utilize Hydration’s Rolling DCA mechanism to mitigate market volatility impact and ensure transparent execution. Polkadot emphasizes this strategic allocation isn’t speculative but aligns with decentralization principles through non-custodial tBTC integration.
Community reactions remain divided, with supporters viewing Bitcoin exposure as a hedge against DOT volatility while critics express concerns about timing and potential selling pressure. This move reflects broader blockchain treasury diversification trends recognizing Bitcoin’s role as a digital store of value.
Simultaneously, Polkadot continues expanding ecosystem utility through initiatives like a Visa-compatible payment card, though faces regulatory delays for its exchange-traded fund application.