The Polkadot community is at an important crossroads, with a proposal that involves converting 500,000 DOT tokens into Bitcoin to create a financial reserve.
This initiative aims to differentiate the assets and ensure greater long-term stability, in a context of particularly volatile markets.
The proposal for a Bitcoin reserve by Polkadot: a diversification plan
At the beginning of June, a member known as “hippiestank” launched the proposal to adopt a gradual purchasing strategy, known as dollar-cost averaging (DCA), to convert a significant portion of Polkadot’s liquidity into Bitcoin.
The sale of 500,000 DOT tokens would indeed be distributed over a year, in order to minimize the impact on the market and reduce the risk of incorrect timing.
Additionally, the transition to Bitcoin would not be direct but mediated through Threshold Bitcoin (tBTC), a non-custodial solution that utilizes threshold wallets based on ECDSA, an advanced digital signature technology.
This system is designed to preserve decentralization, increase transparency, and maintain high liquidity within the Polkadot ecosystem.
The supporters of the proposal emphasize how Bitcoin can represent a solid hedge against the uncertainties of the current market. In 2025, the price of DOT showed disappointing performance, pushing some members to seek more stable alternatives.
According to this view, creating a reserve in Bitcoin helps Polkadot to not rely entirely on the performance of a single asset, ensuring continuity even in bear situations.
Furthermore, the DCA strategy reduces the risk associated with lump sum investments, avoiding entering the market at a bull or bear peak or crash.
As stated in the proposal, it is not a speculative move but a prudent risk management and structural preparation. In fact, the author emphasized that waiting for the “perfect” moment does not lead to effective diversification:
“I believe that the topic ‘DOT ATL, BTC ATH’ misunderstands the situation. This proposal concerns risk management and operational continuity, not market timing or speculation.”
Doubts and Criticisms on the Conversion of DOT Tokens
However, not everyone shares this optimism. Some members of the community have expressed reservations about the actual value of this bull transformation of assets.
Among the main doubts emerges the perception that this operation may not bring benefits in the short term and that it may even worsen the situation, considering the bear pressure deriving from other DCA activities already underway and the decrease in general interest.
It has been highlighted that without extensive community involvement and without an in-depth analysis, a decision of this magnitude could prove to be counterproductive.
Some fear that the sale of such a significant quantity of DOT could further lower its market price, with negative cascading effects.
The strongly contrasting opinions reflect the importance and delicacy of the choice. The necessity to balance innovation, diversification, and protection of the investment leads the Polkadot community to a heated bull in the forum.
In the end, it will be an official vote to determine the adoption or not of the strategic reserve in Bitcoin. This phase is crucial to define the future financial direction of the project and its ability to manage market fluctuations.
Parallel Innovations: the Polkadot Payment Card
In a broader perspective of growth and diversification, the community has recently approved the launch of a non-custodial payment card branded Polkadot, which will be accepted in all Visa services.
This represents a concrete step towards the integration of the Polkadot ecosystem into the daily activities of users, facilitating the adoption and dissemination of the technology.
This innovation, while independent from the Bitcoin reserve proposal, reflects a clear strategy: that of strengthening Polkadot by making it more versatile and less vulnerable to market fluctuations.
If approved, the creation of a strategic reserve in Bitcoin could represent a paradigm shift for Polkadot.
A well-thought-out diversification allows for the mitigation of risks arising from the typical volatility of cryptocurrencies, especially for an asset like DOT that has shown weakness in the short term.
Furthermore, the adoption of non-custodial technologies like tBTC underscores Polkadot’s commitment to decentralization and transparency, fundamental values for the entire community.
As a result, despite doubts and uncertainties, this proposal opens an important debate on the future of financial strategies of the major blockchain platforms.
The upcoming vote will be decisive in understanding whether Polkadot will manage to establish a solid reserve as a lifeline or if it will continue to rely exclusively on its own DOT token.
Users and investors are invited to closely follow the updates and actively participate in community discussions and decisions. The path towards greater financial stability also involves shared and informed choices.