A Polcado governance proposal converts 500,000 point tokens into threshold Bitcoin (TBTC) for diversification and long-term stability, which has caused community members to respond differently.
Although some people believe in Bitcoin (BTC) will serve as a hedge against market uncertainty, and others remain skeptical of the timing of historically high BTC prices.
In early June, “Hippiestank”, a member of the Polkadot community who was a pseudo-sounding Polkadot community, proposed to create the initial strategic Bitcoin reserve in a year. According to the community consensus, the proposal will sell 500,000 Polkadot (point) token and reinvest it to BTC using a USD Cost Average (DCA) strategy.
Threshold BTC (TBTC) is a non-suppressive solution that utilizes thresholds (elliptic curve digital signature algorithm (ECDSA) wallet, which Polkadot can use to maintain its dispersion, liquidity, and transparency.
Plan ahead of schedule market uncertainty
In the forum discussdespite acknowledging that DOT’s price performance in 2025, several members of the Polkadot community believe that Bitcoin reserves can help alleviate the ongoing freefall.
On the other hand, considering that DOT is currently trading at one of its lowest prices, while Bitcoin is above $100,000, someone has made the proposal. The proposal believes that:
“I believe the argument of ‘DOT ATL, BTC ATH’ misunderstands this situation. The proposal is about risk management and operational continuity, not market timing or speculation.”
The proposer further warns that if members remain members in waiting for perfect timing, then Polkadot will never be able to diversify. Furthermore, the community has shown interest in diversifying different asset classes rather than relying on Bitcoin.
Weigh the benefits of Bitcoin strategic reserves
However, skeptics asked for further clarification.
“I just can’t see how we do this and really offer any value for it, short-term or long-term,” said a community member. “Even with amazing yields, the harm caused by the additional downward pressure that we’ve already competed with other DCAs and other DCAs with a lack of interest may far outweigh the benefits.”
The member also urged the proposers to engage a wider group of members on X before making a final decision:
Despite the ongoing discussions, the Polkadot community will eventually have to vote and finalize the strategic reserves for diversification.
The community recently emission Polkadot brand non-custodial payment card, which can be used for visa acceptance services.
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