Polkadot Moves to Launch Its Own Native Stablecoin @Polkadot is on the verge of a significant shift in its financial infrastructure. A governance proposal, filed as OpenGov Referendum 1944 an
@Polkadot is on the verge of a significant shift in its financial infrastructure. A governance proposal, filed as OpenGov Referendum 1944 and titled "dotUSD: A Native Stablecoin for Polkadot," is currently in its decision period and has attracted overwhelming community support. The proposal has received 97.6% of votes cast in favor, with around 2.39 million $DOT counted on the Aye side from 31 voters, compared with roughly 59,900 $DOT from nine voters opposed.
The proposal aims to create a Polkadot native stablecoin called dotUSD, an asset designed to be owned by the protocol itself rather than by a private issuer, and eventually backed mainly by $DOT.dotUSD is meant to hold its dollar peg without a company as the issuer. The proposal text describes the stablecoin as protocol-native: the token belongs to the network itself, is administered through on-chain governance, and is later to be backed predominantly with $DOT.
The proposal was drafted by community members across the Polkadot ecosystem and submitted via the Polkadot Community Foundation (PCF).
The proposal outlines a two-phase rollout. In the first phase, users would mint dotUSD against $USDT on a one-to-one basis, subject to a supply cap. This version would not require the oracle, collateral vaults, or liquidation system planned for the later $DOT-backed model.
Phase two would move dotUSD toward its intended design by introducing $DOT-backed collateral vaults, an oracle, a stability pool, liquidations, and a redemption mechanism.
The plan commits real treasury money up front: $2.5 million in $USDT to mint the initial dotUSD supply and another $2.5 million in $DOT allocated to the liquidity pool, for a combined $5 million in seed liquidity.dotUSD would also be designated a "sufficient asset," allowing an account to hold the stablecoin without having to maintain a $DOT balance.
The proposal matters because Polkadot applications and treasury operations currently rely on external stablecoins. A native stablecoin could reduce that dependency while giving $DOT a direct role in collateralized borrowing and liquidity. If dotUSD passes and launches as planned, it could mark one of the more consequential upgrades to one of crypto's longest-standing layer-1 ecosystems.
Sources:Crypto Times: Polkadot OpenGov Votes on Native dotUSD Stablecoin ProposalCryptonomist: Polkadot Native Stablecoin dotUSD Garners 97.5% SupportBitcoin Ethereum News: Polkadot Community Votes on DOT-Backed Native Stablecoin dotUSD
