- Accepting TBTC is intended to compensate for the risk of treasury, reduce the dependence on DOT and increase the liquidity of omnipool.
- With the help of the hydration system, Polkadot can convert over half a million dot into TBTC within one year.
A new proposalthe currently is discussed, suggests that Polkadot diversify its treasury and a Bitcoin-Engagement could include. For this purpose, 501,000 dot are proposed, which are to be issued gradually for the purchase of TBTC in 12 months. This would introduce a decentralized Bitcoin to diversify the treasury.
Polkadot community members proposed creating a Bitcoin Strategic Reserve for the Treasury. The plan suggests using 501,000 DOT to gradually purchase tBTC over one year via Hydration’s Rolling DCA mechanism. The tBTC would be added to Hydration Omnipool as liquidity using…
— Wu Blockchain (@WuBlockchain) June 13, 2025
The purchase process would be based on a rolling dollar-cost averaging system developed by hydration. This method would distribute the use of DOT over time and not in large quantities, which could minimize the risk of sudden price fluctuations. The conversion of DOT into TBTC would be carried out with the non-controlling Bitcoin bridge by Threshold Network, so that no individual party takes control of the assets.
Omnipool of Hydation benefits directly from this strategy. When the THE THE TBTCS collects, these assets are fed to the Omnipool as liquidity. The use of Bitcoin-secured assets could make the trade easier and more accessible in this environment.
The aim of a BTC-based reserve is to reduce the DOT dependency
The purpose of adding Bitcoin in the form of TBTC is to create a greater reserve base that reduces the dependence on polkadot on the dot. The spread of buying over a year is an important factor. It minimizes exposure to extreme volatility in harmony with the long-term targets of optimal treasury control. It is a cautious attempt to improve risk management and at the same time achieve performance.
If the proposal is implemented, it could redesign the selection and management of the treasury assets. The strategy is currently in the discussion phase, but is not yet released for coordination in the retail chain. A stronger participation of the community and a later consensus would be necessary to implement any aspect of the strategy.
501,000 dot are to be used for gradual bitcoin exposure
The role of Threshold Network in this proposal is essential. Its non-protecting bridge offers security when switching between Bitcoin and TBTC without having to be stored centrally. This preserves the decentralized approach of Polkadot and at the same time enables access to a large digital asset.
If the plan opens, the resulting liquidity syringe for the omnipool of hydration could lead to increased activity on the Bitcoin-based trading markets. This could also attract developers and users of Bitcoin-based applications in decentralized ecosystems. An increased commitment could make innovation easier for Bitcoin services and extend the use of Bitcoin beyond use as a value preservation means.
No schedule for approval by the community has yet been determined, but those involved observe the proposal due to its design and its potential sustainable influence. The purchase of 501,000 by DOT will gradually insert Polkadot into the Bitcoin in order to make its financial strategy more stable.
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