The Polkadot community is considering building a strategic Bitcoin reserve. A forum proposal suggests using 501,000 DOT to gradually accumulate tBTC over the course of one year.
Polkadot’s Bitcoin Strategic Reserve Proposal
The latest proposal floating in Polkadot’s forum aims to diversify the Polkadot Treasury and strengthen its resilience through market turbulence.If approved, the BTC purchases would be made through Hydration’s Rolling DCA (Dollar-Cost Averaging) mechanism.
Note that this would allow small, regular buys to smooth out price volatility. The acquired tBTC would then be added to the Hydration Omnipool as liquidity, using the Threshold Network’s non-custodial bridge.
The proposal has not yet moved on-chain but has sparked active conversation within the governance forums.
The author of the proposal, a community member, ‘hippiestank’, said:
“This proposal will convert 500,000 DOT into tBTC over the course of a year using Hydration’s rolling DCA feature… This allows diversification of the Treasury portfolio while supporting ecosystem DeFi incentives.”
Bitcoin’s strong performance over the last decade rests at the crux of the idea. The community believes holding BTC in the Treasury could help Polkadot hedge against long-term uncertainty. This is possible while even reinforcing its position as a multi-chain, future-ready ecosystem.
The proposal stresses operational continuity over speculation, and the author said that the Treasury should not wait for ideal market timing. Comparing the plan with that of Ethereum, Hippiestank wrote, “Even the Ethereum Foundation has diversified,” the post notes. “Why shouldn’t we?”
Market data seems to support the proposal’s logic. With Bitcoin currently trading above $104,800, DOT has lost around 60% of its value against BTC since January. Analysts estimate that if the Treasury had used a DCA approach into Bitcoin six months ago, it could have netted roughly $1.5 million, even with DOT’s price decline.
While the core proposal focuses on BTC accumulation, others in the forum have started imagining broader ideas. One contributor floated the idea of turning PCF (Polkadot Community Fund) into a holding entity. This would allow it to purchase real-world assets — such as solar farms or bitcoin mining rigs , and issue tokens or NFTs representing those assets.
That concept includes generating yield from Real World Assets (RWAs), allowing users to stake, borrow, or lend against tokenized infrastructure. The Treasury could charge fees for custodianship and asset issuance, and add an entirely new layer of utility and revenue potential.
As for now, the proposal remains in the discussion phase. However, its author indicated plans to bring it on-chain as early as next week, pending further feedback.
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