- Polkadot may allocate 501K DOT to slowly buy tBTC for treasury reserves via Hydration.
- Community split on timing and scope—some fear added pressure on DOT, while others want alternatives.
The Polkadot community is weighing a proposal that would redirect 501,000 DOT into Bitcoin, creating a strategic reserve over the next 12 months. The plan, introduced in early June by the user “hippiestank,” recommends using Hydration’s Rolling DCA system to acquire threshold Bitcoin (tBTC) steadily over time.
Instead of executing manual trades, the Rolling DCA structure simplifies the process. Community members would top up a proxy account, which then renews the buying cycle automatically. The tBTC acquired would be added to Hydration’s Omnipool, utilizing Threshold Network’s non-custodial Bitcoin bridge.
The proposal also outlines a small addition of 0.005 tBTC to the Omnipool alongside the main reserve purchases. At current conversion rates, 1 DOT corresponds to approximately 0.000041 tBTC. The primary aim, according to the proposer, is to build a long-term Bitcoin reserve for Polkadot’s Treasury, strengthening liquidity and supporting decentralized finance incentives.
Polkadot Near All-Time Low — Critics Question Timing of Bitcoin Buy
While the diversification effort sparked interest, the timing has become the focus of debate. DOT is currently near all-time lows, while Bitcoin continues to hold above the $100,000 mark. Several users believe that buying Bitcoin now, while DOT is undervalued, may result in more losses than gains.
Supporters argue that this isn’t about short-term profits but long-term stability. The proposal states,
I believe the ‘DOT ATL, BTC ATH’ argument misframes the situation. This proposal is about risk management and operational continuity, not market timing or speculation.
Some participants in the forum worry that such a move might put more pressure on the DOT price, which has already underperformed in 2025. One user commented,
Even with amazing yields, it’s likely to do more harm than good with the additional downward pressure that we’re already contending with from other DCAs mixed with a lack of interest.
Community Pushes for Broader Input and Asset Options
Several community members voiced concerns over limited input in the early stages of the proposal. One user urged wider participation and suggested moving the discussion to X (formerly Twitter) before pushing forward with a final decision. The goal is to gather a broader range of perspectives before taking irreversible steps.
Some also believe the strategy shouldn’t revolve solely around Bitcoin. There is visible interest in exploring other asset classes for reserve diversification. Though BTC remains the centerpiece of the current proposal, it is clear that some are not convinced it should be the only asset considered.
As the forum discussions continue, any final decision will rest with a community vote. Until then, opinions remain sharply divided on whether committing over half a million DOT to Bitcoin is the right path for Polkadot’s Treasury.
