Polkadot community considers introduction of Bitcoin reserves… Proposal to convert 500,000 DOT also suggested

The Polkadot (DOT) community is discussing a plan to create reserves by converting 500,000 DOT into assets linked to Bitcoin.

According to CoinKu, a virtual asset (cryptocurrency) media outlet, on the 13th (local time), the Polkadot community is considering gradually converting 500,000 DOT into tBTC over the next year. Meanwhile, tBTC is a non-custodial Bitcoin asset based on the Threshold Network, holding the same value as Bitcoin.

The proposer explained, "This reserve creation is for risk management purposes, not for speculation," and added, "Waiting for ideal market timing could delay diversification strategies indefinitely."

However, there have been mixed reactions within the community. Some members reportedly worry that creating reserves could trigger additional sell pressure in the market. There are also questions about whether this kind of proposal will have practical long-term effectiveness.

This proposal has not yet reached the stage of an on-chain vote. After further community discussion, a decision on whether to put it to a vote will be made according to future governance procedures.