Polkadot Community Weighs Plan to Convert 500K DOT into Bitcoin for Treasury

Highlights:

• Polkadot is considering converting 500,000 DOT to Bitcoin, aiming to strengthen its treasury reserve.
• Community debates whether Bitcoin can stabilize Polkadot amid DOT’s 60% price drop in 2025.
• Proposal suggests a rolling DCA strategy to accumulate Bitcoin while reducing market risk.

A fresh proposal to convert 500,000 DOT—valued at about $50 million—into Bitcoin has stirred mixed reactions in the Polkadot community. The idea, shared in early June by a user known as hippiestank, aims to strengthen Polkadot’s treasury by creating a strategic reserve in Threshold Bitcoin (tBTC), an Ethereum-based Bitcoin-backed ERC-20 token. The plan suggests buying BTC using Hydration’s rolling dollar-cost averaging (DCA) system to collect Bitcoin over the next year.

POLKADOT COMMUNITY EYES BITCOIN RESERVE USING 501,000 DOT

– The Polkadot community floated a proposal to create a Bitcoin reserve using 501,000 $DOT.

Key Details:

– The proposal plans to convert 500,000 DOT into tBTC, a Bitcoin-backed token on Ethereum, using Hydration’s… pic.twitter.com/YXSQVhc9fE

— BSCN (@BSCNews) June 13, 2025

Rolling DCA Plan Proposed for DOT-to-BTC

Unlike traditional methods, Hydration uses a “rolling DCA” model, where users simply top up a proxy account. The system then continues buying small amounts of Bitcoin over time with minimal manual effort. The proposal comes shortly after the U.S. Securities and Exchange Commission (SEC) delayed its decision on a spot Polkadot exchange-traded fund (ETF), drawing fresh attention to Polkadot’s long-term financial strategy.

The plan also suggests sending a small part, 0.005 tBTC, to Hydration’s Omnipool through Threshold Network’s secure Bitcoin bridge. Based on current prices, 1 DOT is equal to about 0.000041 tBTC. The goal is to help Polkadot’s treasury grow its Bitcoin reserve. This can improve liquidity and support the DeFi system on Polkadot. Right now, the idea is still being discussed by the community and has not yet gone to a vote.

The proposal says that if Polkadot had bought Bitcoin earlier, it could have made $1.5 million in unrealized profit in six months. Although Bitcoin prices go up and down, past cycles show it has gained 5 to 10 times in value. Because of this, the plan suggests using Hydration’s slow and steady buying method to reduce risk.

Polkadot Community Divided Over Bitcoin Reserve

Since DOT’s price dropped a lot in 2025, some Polkadot community members argue that Bitcoin could act as a hedge during volatile periods and enhance on-chain liquidity. They also believe it could increase rewards and participation in Polkadot’s DeFi space. DOT has already fallen 60% this year, and they believe having Bitcoin could help stop it from falling more. 

Some community members are unsure about the timing of the plan. DOT is trading close to its lowest point of the year, while Bitcoin remains strong above $100,000. One person noted that the proposal might not bring much benefit right now. They expressed concern that it could even make things worse by adding more pressure during an already difficult time.

Even with the concerns, the proposal says the goal is not to time the market but to protect Polkadot’s future. The proposer explained that it’s more about managing risks and keeping the network running smoothly, not about guessing prices. Some community members also raised questions about transparency. They felt the idea should be shared with more people on X (formerly Twitter) before moving forward.

Discussions are ongoing, but the proposal’s author says a vote may take place next week, depending on community feedback. If approved, Polkadot would be among the first blockchain networks to test a Bitcoin-backed treasury.