Polkadot Proposes Selling 500K DOT to Buy Bitcoin

Polkadot (DOT-USD) is staring down a fork in the road. A proposal to convert 500,000 DOT into Bitcoin using a year-long DCA plan is dividing the community. Some see a prudent hedge. Others see a risky distraction.

Proposal Pushes DOT toward Bitcoin Reserve

A pseudonymous community member, “hippiestank,” wants to create a BTC reserve for the Polkadot Treasury. The plan is to sell 500K DOT, worth around $1.9 million, gradually over a year. The funds would be reinvested into tBTC, a non-custodial version of Bitcoin.

The method involves dollar-cost averaging the sale of DOT over a full year. This approach is intended to avoid the risks of a single large sell order that could tank the price. The goal is to steadily build Bitcoin exposure over time. The endgame is bigger than just diversification, it’s about turning Polkadot’s treasury into a more resilient, risk-aware reserve built for long-term survival.

Polkadot Community Splits on Timing and Logic

Supporters point to DOT’s weak 2025 price action and Bitcoin’s strength. They argue holding BTC could steady the Treasury during rough markets.

But critics aren’t convinced. One forum post called the timing “backwards,” noting Bitcoin is near all-time highs, while DOT is scraping lows. That math doesn’t feel right to skeptics already worried about downward pressure on DOT from other DCA programs.

Others questioned the value add: “Even with amazing yields, it’s likely to do more harm than good,” one user said. The concern is that this move could signal a loss of faith in DOT itself.

Risk Management or Surrender?

The original proposal pushed back hard on the timing debate, saying: “This is about risk management, not speculation.” The point isn’t to catch a perfect trade — it’s to cushion the ecosystem against unexpected volatility.

And that’s what this really comes down to: whether building a BTC reserve is a sign of smart planning or a subtle admission that DOT can’t weather every storm alone.

Why Bitcoin? Why Now?

Polkadot wouldn’t be the first to hedge with BTC. Threshold tBTC allows for decentralized Bitcoin exposure through ECDSA threshold wallets, keeping things aligned with Polkadot’s non-custodial values.

But even some supporters want clarity: What yield will this produce? What are the operational risks? And could that $1.9 million be better spent directly supporting developers or apps?

Polkadot Bets on Bitcoin to Reinforce Its Future

There’s more at stake here than just a single Treasury decision. If the proposal to convert 500,000 DOT into tBTC moves forward, it would increase the supply of DOT on the open market. That added pressure could weigh on the token’s price in the short term, particularly in an already fragile market environment.

But the long-term vision is what’s key here. A Bitcoin reserve could offer Polkadot a financial backbone strong enough to weather future crypto downturns. It’s a move that echoes institutional thinking, using harder assets like BTC to anchor operations and reduce vulnerability to internal volatility.

Symbolically, the shift matters even more. It reflects a deeper philosophical pivot within the ecosystem: a willingness to hedge rather than bet everything on DOT. By recognizing the strategic value of external assets, Polkadot is signaling maturity, and a more pragmatic roadmap for longevity.

Final Vote Still Pending

The discussion is active on the Polkadot forum, but no official vote has been held yet. One user called for broader participation from DOT holders on X (formerly Twitter), pushing for a deeper, more public debate before decisions get locked in.

In the meantime, the Treasury recently approved a Polkadot-branded Visa card. That shows the network isn’t shying away from expanding its financial reach, even if it’s still deciding how much Bitcoin belongs in the vault.

At the time of wiring, DOT is sitting at $3.826.