A Polkadot governance proposal to transform 500,000 DOT tokens to Threshold Bitcoin (tBTC) for diversification and long-term stability has acquired blended reactions from group members.
Whereas some consider Bitcoin (BTC) will function a hedge towards market uncertainty, others stay skeptical in regards to the timing amid all-time excessive BTC costs.
In early June, pseudonymous Polkadot group member “hippiestank” proposed the creation of an preliminary Bitcoin strategic reserve over the course of 1 yr. Upon consensus from the group, the proposal will promote 500,000 Polkadot (DOT) tokens and reinvest it into BTC utilizing a dollar-cost averaging (DCA) technique.
Threshold BTC (tBTC) is a non-custodial answer using threshold-(Elliptic Curve Digital Signature Algorithm (ECDSA) wallets, which Polkadot may use for sustaining its decentralization, liquidity and transparency.
Planning forward for market uncertainties
Within the discussion board dialogue, whereas acknowledging DOT’s poor worth efficiency in 2025, a number of Polkadot group members believed a Bitcoin reserve may assist cushion the continuing free-fall.
Then again, some questioned the timing of the proposal, contemplating that DOT is at present buying and selling at one among its lowest costs, whereas Bitcoin stands robust above $100,000. The proposal argued:
“I consider the ‘DOT ATL, BTC ATH’ argument misframes the state of affairs. This proposal is about danger administration and operational continuity, not market timing or hypothesis.”
The proposer additional warned that Polkadot won’t ever be capable of diversify if members stay hellbent on ready for the right timing. Moreover, the group confirmed curiosity in diversifying into totally different asset courses and never solely counting on Bitcoin.
Weighing the advantages of Bitcoin strategic reserve
Nevertheless, skeptics demanded additional clarification.
“I simply don’t see how we are able to do that and for it to essentially present any worth, brief or long run,” one group member mentioned. “Even with wonderful yields, it’s more likely to do extra hurt than good with the extra downward strain that we’re already contending with from different DCAs blended with an absence of curiosity.”
The member additionally urged the proposer to contain a wider group of members on X earlier than coming to a last resolution:
Whereas discussions are underway, the Polkadot group will finally should vote and finalize the creation of diversified strategic reserves.
The group lately gave the nod to the launch of a Polkadot-branded non-custodial cost card, which is usable on companies accepting Visa.
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